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General OS News

Intel confident it has the capacity of meeting chip targets

By Anton D. Nagy October 1, 2018, 9:15 am

We’ve been hearing a lot of reports about Intel’s alleged shortage of 14nm chips. The company is late to start its new production technology for the next-gen processors, and rumors are talking about manufacturer clients being really concerned about the situation. The last time we heard about Intel was with the occasion of a report that claimed it was outsourcing part of its 14nm production in order to cope with demand.

A recent Reuters report claims Intel went on record saying it had enough supplies to meet annual revenue targets. Intel is reportedly boosting PC chip output, as the report claims this move is going to hopefully put an end to fears of competitor AMD stepping up and eating into its market.

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As an immediate effect, Intel shares went up 3 percent (to $47.26) after the announcement, while AMD shares dropped 5 percent.

We now expect modest growth in the PC total addressable market this year for the first time since 2011, driven by strong demand for gaming as well as commercial systems. Supply is undoubtedly tight, particularly at the entry-level of the PC market”, said interim CEO Bob Swan, in a letter published on the company’s website.

The company said it will focus on the production of Xeon and Core processors. It is part of a plan to increase capital spending by $1 billion to a total of $15 billion in 2018. Everything is due to rising demand, the report mentions. “We will have at least the supply to meet the full-year revenue outlook we announced in July, which was $4.5 billion higher than our January expectations” Swan said.

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