Intel, the largest CPU manufacturing company, failed to deliver their products. Intel products face scarcity in the market after their foundry isn’t able to produce more products for their consumers and partners. Companies can’t supply products as they face CPU shortage causing their earnings to dip.
Dell unable to provide product due to CPU shortage
The 3rd biggest PC supplier Dell got cut short by Intel who was unable to provide them with their High-End CPUs like the Core i7 and Core i9. Dell has been using Intel for all of its products ranging from their Desktop to their Laptops. As of the CPU shortage, customers face delays and opportunity costs on their Dell products. Dell’s more premium section, the XPS line of desktops and laptops don’t come with AMD CPU or GPU configuration. Dell has been using AMD’s decade-old Stony Ridge APUs on limited laptops, which cannot hold up with today’s application.
Dell finally moved to AMD as they started selling AMD Ryzen 7 and Ryzen 9 high-end CPUs to the general consumers. The new Alienware also ships with AMD Ryzen processors and Navi 14 based RX 5700. Dell previously sold the AMD Threadripper lineup with their Alienware Area-51 Desktop machines. The new Aurora desktop CPU marks the newfound partnership between AMD and Dell, resulting in AMD taking some share in the CPU market.
Dell’s earnings were cut down due to Intel’s CPU shortage. Dell reported cutting its full-year revenue forecast due to the widespread CPU shortage. According to the report, Dell’s fiscal 2020 revenue forecast has been cut down from the range of $92.7 billion to $94.2 billion to approximately $91.5 billion – $92.2 billion.
Intel apologized and enlisted Samsung to produce desktop CPU
Intel apologized to their customers and partners in the form of an open letter. To reach their demands on their CPU, They have enlisted orders to Samsung’s foundry to produce desktop CPUs. Intel signed a contract with Samsung to produce their desktop CPUs, removing some burden from their foundry. At first, they opted to sign an agreement with third-party foundries to deliver their products. Intel could have also ordered TSMC to manufacture their CPUs; nonetheless, TSMC had their hands quite full. Intel boosted the business of Samsung’s foundry. Samsung had been facing low sales numbers in its memory chips.
Intel is in turmoil as they aren’t able to meet the demands. Intel lately is out of the comfort zone facing massive competition from AMD. AMD has been crawling up the ranks delivering some record-shattering CPUs rendering Intel to forward their 10nm process for their upcoming generation of new processors. Intel forced to speed up their research for their 10nm processors as their competitors AMD who have been selling 7nm processors with lower price tags.