Intel ensures a 25% increase in production capacity in 14nm after acquiring new machinery

With the intention of improving the processor offer, Intel has invested millions in new machines, managing to increase its production by 25%.

Intel's situation in the market is very complicated and seems to be getting worse and worse. The company seems to have problems with 10nm, which does not finish arriving for desktop. The constant lag and keep pulling the 14n is leading to a lot of back and forth. To top it off HP and Lenovo have been concerned due to stock problems by the company.

Intel has presented the accounts for the third quarter of the year, where there is a fairly revealing data. The sale of Customer Computing processors (desktop) has fallen and the sale of units for Data Centers increases. They are clearly meeting the demand of the segment that offers the highest profit margin.

Increase in the production capacity of processors

In order to increase production capacity by 25%, as they claim, they have invested 11 billion dollars. They have bought new machinery to improve chip production capacity by 500nm. A part of the capital would be destined to the production of 14nm processors, but the amount has not been specified. The company is giving priority to the Core i10, Core i5, Core i7 and Xeon, which are the ones that offer the most profit margin.

Even with this increase in production, they have only equaled the income of the same period last year. They would not have improved in revenue because the gross margin would have been reduced. Intel would have had to lower the price of its processors in the face of brutal competition from AMD. Without going any further, the Skylake-X Refresh will come at half the price of their predecessors.

Intel's struggles to meet demand appear to be far from over. Above all, it has trouble meeting the demand on laptops and OEM systems. Something that would be negatively affecting its partners, who would look to AMD for alternatives.

Source: Anandtech