Intel CEO’s open letter admits “undoubtedly tight” 14nm supply, promising an extra $1bn for manufacturing

Intel’s interim CEO, Bob Swan, has published an open letter promising to spend an extra $1 billion to boost 14nm manufacturing across its sites in Oregon, Ireland, Arizona, and Israel. This is in response to the “undoubtedly tight” supply of Intel silicon across the PC market, and because the 10nm struggle is very real... Swan says that the extra money Intel is spending on 14nm manufacturing, along with “other efficiencies,” will increase the supply to cope with the increased demand. The suggestion in the letter is that because the PC market as a whole has grown, for the first time in six years, that Intel is struggling to meet this surprising extra demand. That certainly plays into it in part, but Intel has also put pressure on its 14nm facilities by the failure to transition CPU silicon to the long-awaited, much-delayed 10nm production process. That means both its chipset silicon and processors are being produced on the same lithography, where traditionally the CPUs would have moved on to pastures and processes new by now.

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