Intel says PC chip supply is on track to meet full-year revenue targets

In a letter to customers, Intel CFO and Interim CEO Bob Swan says the chipmaker is investing an extra $1 billion in its 14nm manufacturing sites.
Written by Stephanie Condon, Senior Writer

Intel's interim CEO Bob Swan is assuring customers and investors that it will have the PC chip supply to at least meet the full-year revenue outlook that Intel announced in July. In a letter published online Friday, Swan outlined steps the company is taking in response to the unexpected upswing in the PC market.

"The surprising return to PC TAM growth has put pressure on our factory network," Swan wrote.

Also: PC sales might actually grow next year, thanks to Windows 10

Second quarter PC shipments grew globally for the first time in six years, according to Gartner. Swan said Intel now expects modest growth in the PC total addressable market (TAM) this year for the first time since 2011. In July, Intel raised its full-year revenue outlook to $61.3 billion due to the stronger-than-expected PC market.

Intel is prioritizing production of Xeon and Core processors to serve high-performance segments of the market. However, Swan noted, "Supply is undoubtedly tight, particularly at the entry-level of the PC market."

Also: Best laptops, tablets and desktops for creatives in 2018 CNET

In response, Intel is an extra $1 billion in its 14nm manufacturing sites in Oregon, Arizona, Ireland and Israel. That brings its capital expenditures investments to a record $15 billion for the year.

Swan also said Intel is making progress with 10nm. "Yields are improving and we continue to expect volume production in 2019," he wrote. Intel initially planned to release 10nm processors in 2015, but it revealed in its Q1 earnings report in April that it was only shipping 10nm product in low volumes.

Also: How to run Firefox Quantum on a Chromebook TechRepublic

Swan also made note of Intel's "customer-first approach" to align supply with demand.

These 12 laptops deliver the best battery life

Previous and related coverage:

As new iPad Pros loom, Surface Go provides your daily dose of Windows

Portable and affordable, the Surface Go has launched at the right time to invade a coffee shop near you. But with Apple likely prepping new iPads, Microsoft still has work to do on the Surface's keyboard-free tablet experience.

Best ultraportable laptops for business 2018

Ultraportable laptops are the mobile professional's friend, but which size and model should you buy? We explore the options and list some of the best.

Why are PCs sales growing while Mac sales are crashing?

After years of decline, PC sales are showing tentative signs of recovery, while the last quarter was a disaster for the Mac. What gives?

Windows PCs, Macs are slow and crash constantly, mocks Google

Google's new Chromebook video reminds the world of the worst of Apple and Microsoft computers.

Related stories:

Editorial standards