Intel is reportedly experiencing difficulties in supplying sufficient quantities of its new Core and Core Ultra Series 3 processors, causing distribution bottlenecks. Major PC brands are reportedly facing shortages of Intel’s new chips, despite the company urging these brands to transition to the new processors by discontinuing production of the previous generation. The Series 3 chips are the first manufactured using Intel’s 18A process, marking a significant step in the company’s planned recovery.
Intel’s decline in technology leadership over the past two decades has been attributed to increased competition from TSMC, the world’s largest chip manufacturer. In an effort to streamline operations, Intel is attempting to wind down the production of older chips, known as Alder Lake and Raptor Lake, which are produced by TSMC. Due to TSMC’s critical role in supporting the technology industry, Intel may not receive priority in component production, complicating their supply issues further.
Although Intel manufactures the 18A chips in-house, many requisite components are still sourced from TSMC. The situation may worsen as Intel has also launched its first high-end server chip, the Xeon 6+, produced using the 18A process. This additional demand could exacerbate existing supply constraints.
An Intel executive acknowledged the supply shortage and indicated that the company is actively working to resolve the issue. Engadget has reached out to Intel for an official comment and will provide updates if a response is received.
