Intel CEO Lip-Bu Tan stated that the company currently cannot meet more than 50% of the demand for its processors. The executive noted that the industry is facing a severe memory shortage, with prices increasing by five to seven times. This deficit is expected to persist until at least 2028, causing delays in various technology projects.
The company plans to raise prices for its PC processors by an average of 10% on October 5. This marks the third price hike since late last year, following previous increases in the first quarter and July, where server chip prices rose by as much as $1000. Intel is also struggling with a shortage of components, specifically substrates for chip packaging.
Intel relies on four suppliers in Taiwan and Japan for substrates and is making advance payments to secure priority access. The yield for EMIB packaging substrates is currently around 45%, with plans to reach 55% by January 2027. Additionally, the company is investing in liquid cooling technologies to address broader industry supply chain constraints.
Regarding future production, Intel intends to begin manufacturing using the 14A process node in the first quarter of 2027. For the 18A process, the company reports an annual yield improvement of 7%. The shift in the AI industry toward inference is driving sustained demand for Intel CPUs, which remain in short supply alongside other hardware components.
