Intel unable to catch up with consumer demand
Amidst the shortage of graphics cards in the world, Intel warns that their processors could be the next thing to run scarce. The situation isn’t too bad right now, but things could change very soon.
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In their latest earnings call (transcript by Seeking Alpha), Intel said there is an industry-wide shortage of substrates that are used in the manufacturing of CPUs. Consequently, there are limitations on the number of chips the company is able to manufacture, and as a result, they are unable to fully supply customer demand.
Company CFO George Davis says “While I expect the shortages to bottom out in the second half, it will take another 1 to 2 years before the industry is able to completely catch up with demand.”
He added, “We expect supply shortages to continue for several quarters, but appear to be particularly acute for clients in Q3.” Intel could witness a further strain on manufacturing as they are set to release their Alder Lake processors later this year.
What’s the solution?
To keep up with the demand, Intel is planning to move manufacturing into its own facilities and help substrate suppliers increase supply. “We’re doing everything we can to help our substrate suppliers increase supply, including finishing up some of their manufacturing in our own facilities,” said George Davis.
Shortage of PlayStation 5 console
It’s not just the CPUs and GPUs that are in short supply. A global shortage of semiconductors has hampered the manufacturing of PlayStation 5 consoles as well and back in May, CFO Hiroki Totoki told analysts the PlayStation 5 shortage is likely to continue till 2022.
