Industry faces “acute” CPU shortage with hope that Intel 18A yields improve
Industry hopes that Intel 18A can alleviate CPU shortages
The world isn’t just facing a memory shortage; it’s also facing a CPU shortage. Intel is currently capacity-limited, meaning it cannot make enough CPUs to meet demand. AI datacenter demand is driving sales of large Xeon processors, making some of Intel’s other CPUs scarce. According to Digitimes, many CPUs are now “effectively unavailable”, with others having more premium prices.
Many in the industry hope that Intel can alleviate this issue with 18A capacity expansion and yield improvements. This will make Intel’s new Panther Lake (Core Ultra 3 series) and newly released Wildcat Lake (Core 3 Series) CPUs more widely available and alleviate the shortage. Intel 18A capacity and yield improvements should also increase Intel “Clearwater Forest” Xeon CPU availability, further alleviating the CPU shortage.
Unlike TSMC’s newest lithography nodes, Intel 18A is only used to build Intel products. That means that 18A improvements will only impact the CPU market. That’s good news for CPU customers, as this means that extra capacity and yield improvements will not be utilised for AI accelerators, GPUs, or DRAM.
A global CPU shortage is disrupting PC and industrial-computing supply chains, as processors are out of stock even at premium prices, while memory is limited but purchasable. The scarcity threatens notebook and industrial PC availability worldwide and may persist for some time until Intel’s 18A process yields improve, industry sources warn.
Industry contacts described the current situation as more acute for processors than for memory, which is available in limited quantities at higher prices. By contrast, several processors are effectively unavailable regardless of price, affecting both Intel and Advanced Micro Devices (AMD). Suppliers said relief may hinge on improvements in Intel’s 18A process yields.
Both Intel and AMD raised processor prices by 10-15% recently to reflect rising costs. Notebook supply chain representatives, however, reported no immediate expectation of further increases because product availability, rather than price, is the primary constraint.
Recent rumours have also suggested that Intel plans to release “another Raptor Lake Refresh“. This will revive its 13th/14th generation Core processors on socket LGA-1700 to also combat CPU shortages. This will help Intel to satisfy the world’s demand for CPUs using Intel’s now legacy lithography nodes.
Right now, the CPU shortage is expected to get worse before it gets better. Hopefully, CPU manufacturers will be able to respond to this demand increase and alleviate shortages. Otherwise, more price hikes may be on the horizon.
You can join the discussion on the world’s CPU shortage on the OC3D Forums.
