Tue. Jul 7th, 2020

Intel announces an increase of $1 billion in spending to increase capacity to alleviate shortages

2 min read

At present, Intel’s multiple series of processors are facing severe shortages, and the lack of supply has also caused the price of processors in the entire market to rise.

For Intel, the lack of capacity will also affect the full-year revenue performance, for which the company decided to increase the processor production by an additional $1 billion.

Intel microcode license

Intel’s Chief Financial Officer and Interim Chief Executive Officer issued a statement:

We have seen a shortage of processor products on the market today, especially in Europe, the Middle East, Africa, and the Asia Pacific region.

The continued explosive growth of data and the need to store analytical data drive industry entrepreneurship, while the demand for computing power in the enterprise has grown dramatically.

Our data center business grew by more than 25% in June, the cloud computing business surged 43% in the first six months, and the performance of the PC business was even more surprising.

In response to this situation, Intel will introduce a variety of measures to increase processor capacity and production, to ensure that the market can continue to supply processor products and so on.

An additional $1 billion to expand capacity:

The most exciting thing about Intel’s announced measures is the extra $1 billion in another spending to increase the overall function and production of several major manufacturing plants.

The 14 nm processor manufacturing facilities in Oregon, Arizona, Ireland, and Israel will receive financial support to increase production.

At the same time, Intel also mentioned that the company has made progress and improved production on the 10 nm process, and is expected to continue to increase overall production next year.

But in fact, $1 billion has already been invested:

Some analysts have found through Intel’s data that Intel invested an additional US$500 million before April and an additional 500 million before July.

That is to say, before the announcement of this news, in fact, this billion-dollar capital has been put into production base, but the market shortage does not seem to improve.

As for Intel claim that the 10 nm process is progressing and improving production, Intel only stated that the annual increase in production capacity did not indicate large-volume shipments.

Via: Bloomberg