Intel has been struggling with the lack of processor for months, due to the manufacturing constraints associated with the difficult 10nm ramp, as well as the increased demand for 14nm data center processors. The company announced during its last conference call that it will spend another $ 1 million to increase production by 14nm.
This deficiency could ease in the first quarter of 2019, when it would be expected that the components will be included before the beginning of the lunar new year at the beginning of February, according to DigiTimes. The site writes:
The sources reported that the CPU supply outage since the beginning of the third quarter of 2018 has disrupted shipments of PC shipments and ODM laptops. Business conflicts between the US and China have further suppressed suppliers of the supply chain, including chips, which prevent them from enjoying top-level performance in the third quarter.
Intel's Chief Executive Officer, Robert Swan, took the 22nd Annual Credit Suisse TMT conference on November 27 to address some of these concerns. He reiterated that Intel was on the way to the 10nm platform for the 2019 holiday, before saying that the FPGAs would also follow these guidelines, the servers "relatively quickly followed at 10 nm, early in 2020. So we compressed timeframe from computer to server So the growing part of our business, as we get by 2020, will be transferred to 10 nm. "
This means that rumors limited or mobile only 10nm ramps may be incorrect. Intel could still plan to switch to 7nm faster than its typical cadence, but the company did not release any details. Swan said Intel's data center business is on its way to grow by 20 percent for the full year of 2018, and that it represents twice the growth expected by the company in 2017. ASP grew faster than unit shipment – in high single digits, comparison with double-digit growth of ASP.
As for the lack of components, Swan said:
[W]with a 10 nm pressure coming out a bit, the stock we count from 10 nm does not actually happen. So we have come to a situation where supply is limited and we have done a lot of things to get to a position where we can clearly tell our customers that we will not be limited to your growth. So this year we spent billions and a half more capital to increase capacity by 14 nm. We changed some of our 10 nm equipment we had back at 14 nm. So we get more performance and we're tackling the constraint problem so we can lose it as soon as possible.
This generally confirms our original theory of where Intel's 14nm deficiency originates, especially since we include increased demand for high-end high-resolution processors. One of the potential flights in this ointment is the continuing commercial battle between the US and China. President Trump this week threatened to pay tariffs for every commodity imported from China, including goods that are currently exempt from these rates. Although it will not affect the price of Intel processors directly, it could greatly affect the cost of the servers for which these systems are sold.
The impact on the overall market is uncertain. In addition to claiming that people "can stand" at 10% of iPhone tariffs, President Trump did not say whether he would demand a 10 or 25 percent tariff for other Chinese goods if he could not reach a resolution with the Chinese. As we have previously discussed, the impact of tariffs always depends rather on whether the goods are taxed and when the tax is assessed. Until now, laptops and desktops built with major OEMs have been freed from tariffs, while components like GPUs have not been. Any change in this policy could affect the prices of the system in the not-too-distant future. While higher server margins are likely to give companies like Dell and HP some freedom to absorb costs, it is perfectly possible for businesses simply to spend time on upgrading their models, assuming that the US and China are ahead of the way later.
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