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Intel could be facing another 14nm chip shortage

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Intel may be on the brink of another 14nm chip shortage, echoing the challenges faced in 2018. The initial signs emerged in May when Intel’s chipsets transitioned to the 14nm process to comply with California’s new power standards, leading to overbooked production and reported shortages of H-series deposits. 

Intel acknowledged these supply issues in July, citing a sudden $4.5 billion surge in demand and the delayed 10nm node as contributing factors. The delayed node has intensified challenges, pushing more demand back to the 14nm production lines. 

These supply constraints are already affecting supply chains, confirmed by Acer’s chairman and CEO, Jason Chen, and CP Wong, president of notebook ODM Compal Electronics. The impact on the PC industry, exacerbated by the U.S.-China trade war, could be more pronounced in the latter half of the year. 

Intel’s struggle to meet prioritized orders for high-volume customers, coupled with a growing demand for 12nm processors, may lead to shortages in the retail market. The launch of Whiskey Lake and Amber Lake processors, coupled with Intel’s commitment to fulfilling Apple’s modern contract, further strains production capabilities. 

On the contrary, AMD seems to have a stable supply of 14nm and 12nm chips from GlobalFoundries, positioning itself well for the upcoming holiday season. 

AMD’s smooth production capacity, transitioning to the 7nm node, contrasts with Intel’s potential challenges, reminiscent of AMD’s successful performance during the previous holiday season.