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Intel Issues Supply Update Outlining 14nm Shortage

spiketheaardvark

Distinguished
Apr 14, 2009
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You don't dump a billion dollars in older tech that will take 6 months to bear fruit if the new hotness is just around the corner. I take this as Intel admitting that 10nm is at least another year away for chips of any substantial size and volume.
 

JamesSneed

Splendid
This is cute. Bob is saying don't devalue our stock because we can't meet demand because we put all our eggs in the 10nm basket and can't deliver so we are having to spin up more 14nm capacity. Also he could also say in 2019 we will have lost the manufacturing lead we have had for two decades. Interesting spin on what should be mostly bad news except for the fact Intel is selling chips as fast as they can make them.

I hope AMD can get Zen2 server chips out early 2019. Will be nice to have a more balanced competition.
 

Scooter 30

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Jul 4, 2014
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I would think it would make sense for them to farm out some production to TSMC instead of taking months to update their current fabs. I'm hoping AMD takes some of their market share because of shortages.
 

hannibal

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Apr 1, 2004
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They are farming TSMC, but that is not enough. Some non essential products are made by TSMC. But those have to be relative simple thing, because making anything complicate like CPU would need completely reengineering of the whole silicon and that would take half year up to full year at minimum.
 

JamesSneed

Splendid


It's not just all new silicon albeit that is a pretty big factor. Intel are using TSMC for chipsets etc but Intel will not send any good IP to TSMC so no real CPU designs etc. They saw this 10nm issue coming almost 2 years ago so they had plenty time but obviously they don't want to use a third party to make there CPU's.
 

none12345

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Apr 27, 2013
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Let me try to remove the corporate spin...

So, they say they will meet guidance for the year, but its going to cost them an extra 1 billion just to meet guidance? If they are guiding the same, and spending more, that means they will earn 1 billion less just to meet what they already guided. Thats not good. And all that in a market that is increasing demand, where it should be easier to exceed initial guidance.

They also wouldn't invest another 1 billion in their 14nm fabs if the 10nm outlook was looking any better, or coming to market anytime soon.

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Its basically they removed 14nm capacity in preparation of a 10nm transition. 10nm fell flat, and is no time soon. They knew this when they guided, so guidance was for reduced 14nm capacity; but now they aren't able to meet guidance on the capacity they have left. So, their only response is bring the 14nm capacity they removed back online until they can fix 10nm so they can meet guidance.
 

JamesSneed

Splendid


Early June would have been best :) It should hit a low in late 2019 would be a good time to pick it back up again if they are still saying they are on track with 10nm.
 
May 31, 2019
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Intel has published a document that outlines the expansion of testing capabilities for 14nm processors to "assure a continuous supply" of some processors as it grapples with a shortage of manufacturing capacity UPSers
 
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