Intel faced a shortage of its own processors for the server and mass market in the middle of last year. Since then, the heads of the corporation has been looking for ways to solve this problem, but the consequences of the deficit are felt now.
The corporation has already invested billions of dollars in expanding the production of a 14-nm CPU, but even so, the output is still not enough to fully satisfy demand.
At a recent investor conference, Intel CEO Bob Swan announced that the corporation was able to quarterly increase monthly production of 14nm wafers compared to 2018.
$11.5 billion was invested in capital expenses and the acquisition of new production equipment over the first three quarters, and the total investment for the year reached $16 billion. However, according to the results of the year, the balance of supply and demand for consumer products will not be achieved.
An increase in the output of semiconductor wafers by 25% does not necessarily mean an increase in finished processors by the same 25%. For example, the number of CPUs received from one wafer can differ several times between flagship models with a large number of cores and budget mobile chips.
Besides increasing the release of 14nm products, Intel is also developing its chip production using its advanced 10nm technology and is preparing for the mass launch of 7nm lines in 2021.