Intel (INTC) Can Fill Only Half its CPU Orders. Is That a Problem or a Signal?
Source: Insider Monkey ·
Intel Corporation (NASDAQ:INTC) can supply only about half of the processor demand its customers are asking for. Chief executive Lip-Bu Tan said so at Splunk’s .conf26 conference in Denver this month. Other chief executives have called him asking for more chips, he said, and he has had to apologize. Not all of the shortage is […]
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Intel Corporation (NASDAQ: INTC ) can supply only about half of the processor demand its customers are asking for. Chief executive Lip-Bu Tan said so at Splunk's .conf26 conference in Denver this month. Other chief executives have called him asking for more chips, he said, and he has had to apologize. Not all of the shortage is inside Intel's factories. The company has pointed to constraints across leading-edge wafers, memory and substrates, the layered boards a chip sits on before the finished part goes into a server. Substrates are the unglamorous one, and the industry has not carried spare capacity in them. Intel's latest quarterly report lists industry-wide substrate and memory shortages among the risks to its supply chain. The tightness showed up months ago in who was being asked to pay. In May of this year, Tan said Intel had asked customers adopting its advanced packaging to help prepay Taiwanese and Japanese suppliers to secure capacity. Four suppliers in Taiwan and two in…