Intel's Acting CEO Responds to Recent Supply Concerns in an Open Letter

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Recently, there has been a lot of speculation that Intel was suffering from supply problems and that these problems, combined with AMD's current dynamics in the processor market, could lead to a significant loss for the oppressed in the past. next few months. Although it does not attack the competitive landscape at all, Intel's Chief Financial Officer and Interim CEO, Bob Swan, has just released a letter explaining the situation and what the company plans to do about it.

Swan points to a number of positive developments that would have weighed on Intel's offer. For example, Intel's data centers and cloud operations grew by 25% and 43% respectively in the first half of the year, and their PC business also increased due to increased global PC shipments in the second quarter. time in six years. The strong demand for gaming systems and commercial systems is driving the growth of PC space and Intel is now forecasting modest growth in the total PC addressable market this year for the first time since 2011.

"Now the challenge … The surprising return to PC TAM's growth has put pressure on our network of factories." said Swan, "We are prioritizing the production of Intel Xeon and Intel Core processors so that we can collectively serve the high-performance segments of the market. That said, the supply is undoubtedly tight, especially at the entry-level PC market. "

Intel estimates that, despite tight supply, it has the annual sales forecast it announced in July, well above the initial forecast of January, about $ 4.5 billion. Nevertheless, Intel will invest an additional $ 1 billion in its $ 14 million manufacturing facility in Oregon, Arizona, Ireland, and Israel, and strive to improve its efficiency to better meet growing demand.

Swan also escaped Intel's 10-nm process. He says that returns are improving and that Intel expects volume deliveries by 2019, but there are not really any details to share in this regard.

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Recently, there has been a lot of speculation that Intel was suffering from supply problems and that these problems, combined with AMD's current dynamics in the processor market, could lead to a significant loss for the oppressed in the past. next few months. Although it does not attack the competitive landscape at all, Intel's Chief Financial Officer and Interim CEO, Bob Swan, has just released a letter explaining the situation and what the company plans to do about it.

Swan points to a number of positive developments that would have weighed on Intel's offer. For example, Intel's data centers and cloud operations grew by 25% and 43% respectively in the first half of the year, and their PC business also increased due to increased global PC shipments in the second quarter. time in six years. The strong demand for gaming systems and commercial systems is driving the growth of PC space and Intel is now forecasting modest growth in the total PC addressable market this year for the first time since 2011.

"Now the challenge … The surprising return to PC TAM's growth has put pressure on our network of factories." said Swan, "We are prioritizing the production of Intel Xeon and Intel Core processors so that we can collectively serve the high-performance segments of the market. That said, the supply is undoubtedly tight, especially at the entry-level PC market. "

Intel estimates that, despite tight supply, it has the annual sales forecast it announced in July, well above the initial forecast of January, about $ 4.5 billion. Nevertheless, Intel will invest an additional $ 1 billion in its $ 14 million manufacturing facility in Oregon, Arizona, Ireland, and Israel, and strive to improve its efficiency to better meet growing demand.

Swan also escaped Intel's 10-nm process. He says that returns are improving and that Intel expects volume deliveries by 2019, but there are not really any details to share in this regard.