The impact of Intel’s chip shortage is almost behind us

Intel CPU shortage

Posted by Geoff Undrell on: in: News, Products

In both Q3 and Q4 of 2018, overwhelming demand for Intel’s 14nm processors meant that both consumers and suppliers of products reliant on Intel chips were faced with considerable stock constraints. Now well into 2019, we’re still feeling the effects of the CPU shortage, which only looks set to continue into the next quarter. This does sadly mean that both the prices and lead times of our products are still being impacted, but we are doing everything we can to alleviate this issue for our customers. This may even influence previously issued quotes, so if you have recently received a quote from us for any upcoming projects that involve an Intel chip, please contact us for an updated quote.

Why is there a chip shortage?

Intel’s chip shortage is down to a number of different factors surrounding the supply of their 14nm 8th generation processors. Due in large part to a record demand for the CPUs, as well as a delay in the 10nm manufacturing process, this resulted in a significant supply gap in the latter half of 2018 which has since rolled over into 2019. This is likely to be augmented in Q2 ‘19 by an anticipated demand for Chromebooks containing Intel’s lower-end CPUs, which may mean their i3 processors could overtake the highly sought-after i5 quad-core Kaby Lake-R chips as the hardest to get your hands on.

Things are looking up for Q3 ‘19

According to DigiTimes research, however, the worst of the shortage may be over by Q3 of this year. Acknowledging that their shift in capacity for high-end processors was one of the causes behind the chip shortage, Intel has been taking steps to address the problem and it’s now predicted that we’ll see a new 14nm capacity expansion of around 25%, which will supposedly mean the end of the issue for good. Likewise, with the data centre boom seemingly almost over, things could be looking up for the supply of Intel’s chips as we move further into 2019.

It’s always darkest before the dawn

We’re hoping that the shortage won’t last much longer and are working to ensure this has a minimal impact on our customers’ orders. If you would like to better understand how Intel’s chip shortage will affect the prices and lead times of your G2 order, please get in touch.