Intel jacks up CPU production

Chipzilla has told the world+dog that it is easing some of the problems that have plagued the supply of CPUs over the last year by stepping up production.

The PC market has struggled with shortages at a time when the commercial segment has been growing with many customers taking measures to migrate away from Windows 7 before support ends in January .

Intel’s CEO Bob Swan said that the supply issues were easing and PC demand continued to improve, particularly in the commercial segment.

“We now expect the PC total available market to be up slightly for the full year,” he said.

“While small core supply improved, we were not able to fully satisfy customer demand for these SKUs in the second quarter. Tariffs and trade uncertainties created anxiety across our customers supply chain and drove a pull-in of client CPU orders into the second quarter,” he added.

Swan sang: “We’re also making steady progress increasing CPU supply. Through our investments, focused execution and tighter customer collaboration, we expect our PC CPU supply will be up mid single-digits this year.

“We’ll continue to work with our customers to meet their required product mix and ramp additional capacity to ensure we are not a constraint on their growth.”

Swan said that the firm was going through a transformation and had been clear about where it saw future revenues coming from.

“We are evolving Intel Inside from a CPU inside a PC to XPUs inside everything that processes stores and moves data. Big bets in 5G, AI and autonomous systems are an important part of this transformation”, he said.