Acting chief financial officer and chief financial officer bob swan talks about supply problem

There has been a lot of speculation recently that Intel is experiencing some supply problems. Although it doesn't address the competitive landscape at all, Intel's acting chief financial officer and chief financial officer Bob Swan has just released an open letter explaining the situation and what the company plans to do to address it.

Open Letter from Intel's Chief Financial and Interim CFO Bob Swan

Swan points to a number of positive developments that have allegedly affected Intel's supply. For example, Intel's data center and cloud business increased 25% and 43%, respectively, during the first half of the year, and its PC-centric business also grew, as global PC shipments in the second quarter they increased after six years. Strong demand is driving growth in the PC space, now expecting modest growth in the Total Addressable PC Market (TAM) this year for the first time since 2011.

“We are prioritizing the production of Intel Xeon and Core processors so that we can collectively serve the high-performance segments of the market. That said, supply is undoubtedly tight, especially at the entry level of the PC market."

Intel believes that despite the supply shortage, it has the assets to meet the annual revenue outlook it announced in July, which was significantly higher than the original January expectations, to the tune of around $ 4.5. billion. Still, it will invest an additional $ 1 billion at its 14nm manufacturing facility in Oregon, Arizona, Ireland, and Israel, and aims to improve efficiency in an effort to better address rising demand.

Swan also dropped a bite on the 10nm process. He claims that yields are improving and volume shipments are expected in 2019, but there are no real details to share in that regard.

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