Intel Undergoes Chip Supply Shortage for Personal Computers
Recently, Intel Corp declared it was expanding its reliance on contract chip manufacturers. This is with the reason to ramp up the supply of chips used in personal computers.
Moreover, the firm struggles with shipment delays amid higher demand.
In a statement, Intel stated that the supply remained “extremely tight.” It is even though the corporation has developed its manufacturing capacity and boosted second half of its P.C. chip supply.
The capacity was double on digits in contrary to the first half.
Meanwhile, the chipmaker disclosed in a letter, “Despite our best efforts, we have not yet resolved this challenge.” This is where it has also expressed regret to its consumers and affiliates for the delays.
In October, Intel believed that the demand in the P.C. business was surpassing its ability to improve capacity. It was also contemplating on some outside chip makers.
Shares of the chipmaker, which reiterated its guidance for the fourth quarter, were set down 1% after the market trading.
The financial forecast was issued a month ago, but the firm confessed it remains on struggling. The difficulty has to do with delivering personal computers on its customers who have already ordered.
Moreover, Intel signaled at new manufacturing difficulties.
In a written letter to customers posted on Intel’s website, Intel marketing Vice President Michelle Johnston Holthaus said, “I’d like to acknowledge and sincerely apologize for the impact recent P.C. (processor) shipment delays are having on your business and thanking you for your continued partnership.”
Holthaus added, Intel has suffered indefinite “production variability” this fall, which is worsening the shortages.
Intel Undergoing Complications
Currently, the chipmaker is in the midst of a challenging transition. The problem arises from its recent 14-nanometer generation to a new class of 10nm chips.
The new chips have undergone prolonged production challenges, which hindered their introduction by years.
Elsewhere, Apple and Intel on Wednesday filed an antitrust lawsuit. The filing was versus SoftBank-owned Fortress Investment Group, claiming that the corporation stockpiled exclusive rights.
Moreover, it has held up technology firms with lawsuits requiring as much as $5.1 billion from Apple.
The suit was after an earlier case, which was filed by Intel counter to Fortress in October.
Last Wednesday, Intel withdrew that suit and filed a new version in the U.S. District Court for the Northern District of California. It was with Apple, who also joined as a petitioner.
In the filing, Apple indicated that a group of companies linked to Fortress had filed at least 25 lawsuits. All of the trials were opposing the iPhone maker.
Moreover, they have been asking fr between $2.6 billion and $5.1 billion in reimbursements from the iPhone maker.
However, one of the suits which Apple wrote in its filing, suspected that Apple infringed a step-counting patent. This is about its devices with health-tracking apps.
In a complaint, Apple indicated that two Fortress-related firms, Uniloc USA and Uniloc Luxembourg, “have disclosed that they believe they are entitled to damages of between $1.41 and $2.75 per Apple product, for total damages in the range of $375 to $732 million”.
On the other side, Intel stated it could not comment further than the court filing. Apple did not also instantly respond to a request for clarification.