Intel’s CPU shortage is expected to impact the DRAM market, causing price decreases

Intel's CPU shortage is expected to impact the DRAM market, causing price decreases

Intel’s CPU shortage is expected to impact the DRAM market, causing price decreases

Intel has a production problem, saturating their 14nm production lines to the point where they can no longer increase their productivity, creating a situation where they can no longer produce enough processors to meet the demands of their clients.  

Right now Intel is reportedly turning to TSMC to bear some of their 14nm manufacturing workload, moving the production of their low-cost 14nm chipset designs to their manufacturing rival, in hopes to free up their precious fab space, but now it looks like Intel’s manufacturing woes are starting to have an impact on the wider PC market. 

Now DRAM Exchange, a Division of Trendforce, has reported that Intel’s manufacturing troubles are expected to have an impact on both the DRAM and NAND markets, as notebook shipments are expected to decline because of the short supply of Intel processors. After all, you can’t build laptops without a steady supply of processor. 
 
While Intel’s troubles will undoubtedly turn some OEMs towards AMD’s Ryzen mobile offerings, it is likely that many vendors will merely ship fewer notebooks in the coming quarter, which will have an impact on both the DRAM and NAND market. Lower laptop production will decrease the need for both DRAM and NAND at OEMs, leaving more of each memory type available for sale, something which will have an impact on the pricing of both SSDs and RAM.

Intel’s supply shortfall is expected to be solved sometime in Q1 2019, creating an uncomfortable situation for Intel, as AMD has no such supply constraints.   

Intel's CPU shortage is expected to impact the DRAM market, causing price decreases  

DRAM and NAND pricing is already expected to decrease in the coming quarters, with increasing production volumes and relatively steady demand are likely to create a notable market oversupply as we enter 2019. 

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