Intel will have to ramp up production of its 10‑nanometer chips this year because of a shortage of microchips.

Intel will have to ramp up production of its 10‑nanometer chips this year because of a shortage of microchips.

61 hardware

Short overview of the situation with Intel’s central processors

1. The chip shortage is not limited to the server segment
Intel is reallocating its manufacturing capacity, which could negatively affect consumer markets.

2. Plans to increase production in 2024
The company’s CFO said that chip output will be raised even when using Intel 7 technology (the real “10‑nm” process).

3. Intel 7 is the final stage of the 10‑nm process
At a Bank of America conference, David Zinsner highlighted that in the coming quarters there will be a noticeable increase in supply of processors based on Intel 3 and 18A technologies to “catch up” with growing demand.

4. Strategy using Intel 7
The FOP noted:

* This year production on the Intel 7 platform (by wafer count) will be increased.
* Next year volumes may decline to make room for Intel 3 and 18A technologies.
Mobile processors based on 18A are already showing rapid expansion – this is the most active growth dynamic in the last five years.

5. Competitive landscape

* In the server segment Intel holds strong positions, but competition remains high in multithreading workloads.
* On the client market the company is not afraid of competition from Arm‑compatible processors – its market share and performance allow it to maintain solid positions.
* Demand for server chips could significantly boost revenue if production volumes can be increased.
Zinsner forecasts an “explosive” growth in the central processor market driven by AI.

6. Management reforms after Lip‑Bu Tan’s arrival

* The management structure was reduced from a 12‑level to a 6‑level hierarchy.
* The number of vice presidents fell from 400 to 200.
* Intel’s total workforce dropped from over 100,000 employees to less than 80,000.

Thus, Intel plans to strengthen chip production by adapting its technology solutions to current market demands while simultaneously optimizing the company’s internal organization.

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