AMD and Intel Issue CPU Supply Updates Amid Coronavirus Turmoil

Nearly one in five Americans are now confined to their homes, not to mention other untold millions around the globe, as large swaths of the world engage in social distancing to stop the spread of COVID-19. That's putting an unprecedented strain on network infrastructure at every level, and that also equates to strain on servers used in the data center. That means that the supply of chips, long the backbone of the connected world, is incredibly pressing and we could see an increase in server and networking sales as the industry adjusts to handle the load.

Given the recent spate of chips shortages for both Intel and AMD, not to mention threats to their global supply chains, a sudden drop in chip supplies could exacerbate issues during what could be one of the most challenging times in recent history.

Intel's Bob Swan penned a letter reassuring the company's customers earlier this week, citing the company's experienced Pandemic Leadership Team that it established 15 years ago and its globally-distributed supply and manufacturing chains as key reasons the company is operating at nearly full capacity and maintaining a 90% on-time delivery rate. 

AMD CEO Lisa Su also penned a letter to customers last week, delivered via its Meet the Experts network, stating that the company is actively working to maintain business continuity by mitigating the impact on the company's global operations, and also taking steps to assure the safety of its employees during the outbreak. 

Notably, neither chip maker has adjusted its earnings guidance provided during their respective releases last month. 

We'll certainly need the critical supply of chips to continue flowing during the most severe pandemic in modern history.

Paul Alcorn
Editor-in-Chief

Paul Alcorn is the Editor-in-Chief for Tom's Hardware US. He also writes news and reviews on CPUs, storage, and enterprise hardware.