CPU shortage will be solved in 2019 according to president of Intel Japan

Intel is the leading company in X86 processor industry for last 40 years. Although there has been PC market decline in recent years, the production problem of Intel doesn’t come up until the 14nm capacity shortage comes out this year, which influences both Intel and the industry chain. The key question is when will supply recover from the shortage, which is mentioned by president of Intel Japan, Kunimasa Suzuki who said CPU shortage will be solved in 2019 before its year-end shopping season.

    The 14nm capacity crisis is one important issue mentioned by Kunimasa Suzuki, the president of Intel Japan, during the interview of PCWatch Website earlier. According to Kunimasa Suzuki the demand of CPU from global PC and data center market is higher than expected, especially the strong PC market recover. What’s more, Japanese PC market is better than last year remarkably. All of these strong demands lead to the shortage of CPU products. 

    Kunimasa Suzuki also said Intel had added $1 billion capital expenditure to the factories in America, Ireland and Israel to enhance 14nm capacity, whose total capital expenditure was up to $15 billion. What’s more, Intel was developing 10nm process whose mass production is also in progress said by Kunimasa Suzuki. The CPU shortage will be solved before the year-end shopping season of 2019.

    The explanation about CPU shortage given by Kunimasa Suzuki is similar with Intel’s official reason, which focus on too much CPU demand leading to capacity shortage. Although it was mentioned by Intel that increasing 14nm capacity with more capital expenditure earlier, there hadn’t been an official specific schedule to solve the problem.

    The news from industry chain indicates the CPU shortage will be solved in Q2 of next year. A more optimistic view is that it will be solved in Q1 of next year. However, the president of Intel Japan, Kunimasa Suzuki, said it will be solved before year-end shopping season of 2019 whose timing is interesting. It’s time to make mass production of Intel 10nm processor. Is this means Intel will fill the shortage of 14nm with 10nm capacity?