There is no truce, there is no time to lose and yet there are no easy or quick solutions. It is the fish that bites the tail, a loop that will cost to get out and where according to Intel itself, the worst is yet to come. Are we facing the worst chip crisis in history? There is a very clear answer …
Shortages are about to get worse, stock will fall and prices …
Intel CFO George Davis just revealed that the supply of substrates and other materials is really tight, to a point where concern is very high and by the looks of it, it’s going to become extreme.
Davis claims that Intel is unable to meet market demand and that they are overwhelmed, with the situation being totally out of the company’s control. We recently saw that TSMC is in a similar situation and although nothing is said officially, Samsung is silently suffering similar hardships.
However, the situation is not going to improve in a short period of time, to be specific during the third quarter of the year. Davis states bluntly that the prediction is that the supply shortage in this time period will be particularly severe, which is going to cause the industry to face the worst chip crisis in history and that stock will suffer, as well as prices, or will it?
Intel won’t raise prices on its products, including CPUs
Despite the fact that the stock is very low, despite the fact that the materials are almost non-existent in its entirety, Intel by the hand of its CEO, Pat Gelsinger, has officially confirmed that it will not pass on the increased costs in these materials due to their scarcity to their products, something that according to him we have seen in processors since the crisis began.
The motives of Intel’s CEO are curious: they want to generate confidence and stability for their partners. But as it usually happens, Intel not raising the prices of their CPUs and various products does not mean that this will affect all sectors of the industry, since manufacturers could do so in laptops or equipment already assembled taking advantage of the current situation.
That is, only products that Intel sells directly through authorized distributors for end consumers will maintain the price, the rest, such as those that go through AIB, may face a greater or lesser increase as they stipulate.
In CPUs everything will be maintained, but in laptops seeing the trends between the NAND Flash and the worst crisis situation … No one guarantees that these will scale enough.