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Intel executive vice-president and general manager for sales, marketing, and communications, Michelle Johnston Holthaus, in a letter addressing the company's customers and partners, expressed regret that the company hasn't been able to resolve the challenge of PC CPU supply falling behind market growth (demand) despite its "best efforts." She elaborated on these efforts by summarizing additional billions of dollars in capital-expenditure the company spent in retrofitting its facilities to 14 nm fabs. The added capacity increased Intel's output in 2H 2019 by a "double digit" percentage compared to 1H, however, even that proved insufficient to cope with market demand. "Sustained market growth in 2019 has outpaced [Intel's] efforts and exceeded third-party forecasts," she said.
"Supply remains extremely tight in our PC business where we are operating with limited inventory buffers. This makes us less able to absorb the impact of any production variability, which we have experienced in the quarter. This has resulted in the shipment delays you are experiencing, which we appreciate is creating significant challenges for your business," she added, probably referring to the vast portfolio of dozens of SKUs of products that aren't yet EOL, but share the same 14 nm node. Intel deployed its product representatives to proactively reach out to all their customers to "answer their questions." This is probably another way of saying "retaining your businesses." Intel is embattled on two fronts: to make its 14 nm supply keep pace with demand; and to quantitatively transition to the newer 10 nm process.
View at TechPowerUp Main Site
"Supply remains extremely tight in our PC business where we are operating with limited inventory buffers. This makes us less able to absorb the impact of any production variability, which we have experienced in the quarter. This has resulted in the shipment delays you are experiencing, which we appreciate is creating significant challenges for your business," she added, probably referring to the vast portfolio of dozens of SKUs of products that aren't yet EOL, but share the same 14 nm node. Intel deployed its product representatives to proactively reach out to all their customers to "answer their questions." This is probably another way of saying "retaining your businesses." Intel is embattled on two fronts: to make its 14 nm supply keep pace with demand; and to quantitatively transition to the newer 10 nm process.
![](https://www.techpowerup.com/img/WTZOokkXnCttsAU9_thm.jpg)
![](https://www.techpowerup.com/img/kK0i9AJslasmK979_thm.jpg)
View at TechPowerUp Main Site