cageymaru
Fully [H]
- Joined
- Apr 10, 2003
- Messages
- 22,076
Intel CFO and Interim CEO Bob Swan has penned an open letter addressing supply issues at the corporation. He acknowledges the lack of consumer product availability in the retail pipeline as he explains the incredible growth that Intel is experiencing in the High-performance computing (HPC) sector and PC-centric business. "In fact, our data-centric businesses grew 25 percent through June, and cloud revenue grew a whopping 43 percent in the first six months. The performance of our PC-centric business has been even more surprising. Together as an industry, our products are convincing buyers it's time to upgrade to a new PC. For example, second-quarter PC shipments grew globally for the first time in six years, according to Gartner."
He goes on to explain that the two sectors, data-center and PC, exploding in growth in 2018 has placed a tremendous strain on the foundry network owned by Intel. The decision to prioritize high performance chips such as Intel Xeon and Intel Core over the lower end market has caused supply shortages, but Intel is going to meet their revised full-year revenue outlook announced in July that is $4.5 billion more than the January expectations. The open letter goes on to announce future milestones and investment that Intel is making into the development of a 10nm process and foundry network.
To address this challenge, we're taking the following actions: We are investing a record $15 billion in capital expenditures in 2018, up approximately $1 billion from the beginning of the year. We're putting that $1 billion into our 14nm manufacturing sites in Oregon, Arizona, Ireland and Israel. This capital along with other efficiencies is increasing our supply to respond to your increased demand. We're making progress with 10nm. Yields are improving and we continue to expect volume production in 2019.
He goes on to explain that the two sectors, data-center and PC, exploding in growth in 2018 has placed a tremendous strain on the foundry network owned by Intel. The decision to prioritize high performance chips such as Intel Xeon and Intel Core over the lower end market has caused supply shortages, but Intel is going to meet their revised full-year revenue outlook announced in July that is $4.5 billion more than the January expectations. The open letter goes on to announce future milestones and investment that Intel is making into the development of a 10nm process and foundry network.
To address this challenge, we're taking the following actions: We are investing a record $15 billion in capital expenditures in 2018, up approximately $1 billion from the beginning of the year. We're putting that $1 billion into our 14nm manufacturing sites in Oregon, Arizona, Ireland and Israel. This capital along with other efficiencies is increasing our supply to respond to your increased demand. We're making progress with 10nm. Yields are improving and we continue to expect volume production in 2019.