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When will semiconductor overlord Intel's "hanging" unsolved knot in 2019 be resolved?

Looking back at Intel's performance in 2019, the shortage of 14-nanometer CPUs is still the company's biggest problem. Not only that, it has also become a thorn in the company's corporate customers' minds, although the new CEO Bob Swan promised that he would not let CPU shortages happen again However, the problem remained unsolved until the end of 2019. Can Intel get rid of its current situation by 2020?

Snowball effect caused by shortage of CPU supply

"Market Realist" pointed out that despite Intel's better-than-expected financial results in the third quarter of 2019 and improved annual financial estimates, the company still faces supply issues with 14-nanometer CPUs. Due to too few shipments, CPU revenue in the third quarter of 2019 fell by 7.1% compared with the same period last year. Intel also acknowledged that the shortage will continue into the next quarter. According to the Techradar report, the shortage may continue into the second or third quarter of 2020.

The top three computer giants in the PC market, Lenovo, Hewlett-Packard, and Dell, have all complained about Intel's impact on delays in PC shipments.

For example, HP CEO Enrique Lores said that Intel still has a large proportion of HP's product portfolio, so supply shortages may affect HP's performance for at least two quarters, and then business must be adjusted to respond to changes. "CNBC" pointed out that some HP personal computers have begun to use AMD chips.

And Dell also pointed out that due to the lack of Intel CPU, it will revise the fiscal year 2020 revenue forecast.

While Intel is still stagnant, AMD has emerged as a sudden, launching the highly acclaimed Ryzen series products. Patrick Moorhead, an analyst at consulting firm Moor Insights & Strategy, said that if Intel has not solved the problem, AMD will start from the future. Intel has secured more orders from PC makers.

In order to compete with AMD's Ryzen PRO 3000 series processors, Intel significantly reduced the price of the Cascade Lake-X processor in October 2019, but "Forbe" pointed out that, compared to price reductions, it may be the only way to innovate. The best way for the AMD offensive. After all, it is happy to be able to buy processors at a cheaper price, but what users really want is more efficient and powerful products.

Do you sell your business one after another and promote core development?

In addition to the problem of CPU shortage, Intel's backward process is also a major point of concern for the industry. Shortly after Apple and Qualcomm announced a settlement in May 2019, Intel announced that it would withdraw from the 5G mobile chip business and sell the unit to Apple, saying it was to “focus on core business”.

Coincidentally, in November of the same year, the company once again spread its intention to sell the home interconnection business, confirming that Bob Swan, the CEO, “was reviewing the company ’s operating status and identifying uncompetitive departments to focus on core business.” Speech.

Although in the current situation, it is still difficult to determine whether the pie of the 5G mobile chip business is good or bad for Intel, however, it is relieved that the company finally gave it in October 2019. In order to clear the process advancement time and break the stagnation situation, not only announced that it has started mass production of 10-nanometer chips, it is expected to officially debut in the third quarter of 2020, but also said that the first 7-nanometer process GPU is expected to be in 2021. come out.

As for how the market reacts after the product is officially released, it may also determine whether Intel can make a beautiful turnaround, such as resolving upside down.