Intel claims it has enough chips

banner_220x220Intel’s interim CEO Bob Swan has said that Intel will have enough chips on hand to cope with any pick up of the PC industry.

Analysts have said that the PC market is about to pick up and there are fears that Intel might not have enough chips on hand. Already Eastern suppliers are saying that there are shortages of Intel chips and HPE has started buying AMD gear.

However Swan sang that there would be enough to go around: “We’re prioritising the production of Intel Xeon and Intel Core processors so that collectively we can serve the high-performance segments of the market. That said, supply is undoubtedly tight, particularly at the entry-level of the PC market.”

Global PC shipments grew by 1.4 percent year on year in the three months ending June 2018, marking the market’s strongest performance since early 2012.

Demand for Intel’s CPUs has also seen higher than expected demand due to a strong enterprise server upgrade cycle, the firm claims.

However, the California-based vendor’s ongoing scramble to churn out chips is likely to push PC makers and OEMs into the arms of Intel’s main rival, AMD.

AMD’s share price has more than doubled since the middle of last year, but declined around six percent after Swan’s letter was published.

Research company Fubon claims that AMD has already stepped into the breach with deals with Dell and HP, CNBC reported.

In response, Intel has pledged to plough an additional €861.5 million into its 4nm manufacturing across sites in Oregon, Arizona, Ireland and Israel.

“We’re working with your teams to align demand with available supply. You can expect us to stay close, listen, partner and keep you informed,” Swan said.