Intel ‘Maniacal’ on Eliminating CPU Shortages, Supply ‘Remains Tight,’ Says CEO
Exploiting Intel’s “significant opportunities” in computing “requires improved execution, starting with delivering more supply,” said CEO Bob Swan on a Q4 call Thursday. The “added capacity” from capital spending in 2018 and 2019 “allowed us to increase our second half…
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2019 PC CPU supply by double digits relative to the first half,” he said. Demand “has continued to outpace PC supply,” he said. “We are continuing to add capacity so are not constraining our customers' growth.” Adding 25 percent more “wafer” capacity in its 14- and 10- nanometer “nodes” will “deliver a high-single-digit increase in our PC unit volume,” said Swan. “This will enable us to meet market demand, deliver our 2020 financial plan and increase inventory to more normalized levels. Our near-term challenge is working with our customers to support their desired product mix.” Intel’s short-term goal is to “begin to build the inventory levels to a more natural position so that the mix dynamics of what product we sell and when, we can manage the volatility in that much better than we have been able to in the fourth quarter,” said Swan. “We are maniacal about eliminating” CPU shortages “so that we can meet customer demand and never have to worry about it,” he said. The stock closed 8.1 percent higher Friday at $68.47 after Intel beat Q4 revenue expectations by $1 billion and forecast an 18 percent year-over-year Q1 revenue increase.