Asus CEO: Intel 14nm CPU Shortage Has Affected Business
Asus CEO Jerry Shen says the company has seen shipments to the builder community, including motherboards, impacted by Intel's current CPU supply status, according to a report from DigiTimes today. Further, Shen expects the CPU shortage, especially for desktop CPUs, will continue into Q2 2019.
According to Shen, Asus' "operational visibility" for Q4 2018 is 20 percent, a steep drop to the over-50 percent recorded in unspecified previous years. He attributes this to the CPU shortage, as well as growing laptop competition in Europe and the U.S.-China trade war.
Asus' net profits dropped in Q3 by 43 percent compared to the same period last year. For the first three quarters of 2018, the company saw a profit decline of 39 percent compared to the first three quarters of last year.
The company expects PC shipments for Q4 to remain flat compared to the previous quarter, even though you'd normally see significantly more sales in the Q4 compared to the Q3, thanks to holiday shopping. Components shipments are expected to drop 5 percent.
Shen noted that server and gaming PC CPU shipments have stayed on track, so Asus' gaming PC business is yet to be affected by the shortage.
The Asus chief isn't the first to say he expects the CPU deficit to continue into 2019, with Martin Wong, CEO of ODM Compal Electronics, saying the same in September. Intel has been having troubles finalizing its 10nm process node, causing shortages in its 14nm processors that it expects to worsen in Q4. Intel even had to revert to the old 22nm chipset to be able to fulfill the demand.
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Lucian Armasu is a Contributing Writer for Tom's Hardware US. He covers software news and the issues surrounding privacy and security.
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BonScott haha, Intel too busy trying to get yields on massively multi-core SINGLE dies, running smack up against Moore's Wall, what idiots.Reply -
wownwow OEMs deserve the results from what they have been doing, almost solely relying on the one source, Intel!Reply -
BonScott AMD (who was on 28nm just a couple years ago) will be on 7nm, while INTC has been at 14nm the whole time.Reply
AMD had a dragon Intel did NOT EVEN KNOW ABOUT; Infinity Fabric (plus a Jim Keller CPU Beeeches !!!!) -
BonScott ... and those massively multi-core SINGLE dies have way worse thermals and can't clock near AMD's TR, Epyc, Rome on all cores ... and the only Intel ones that can are low yield, expensive, and require a RIDICULOUS cooling system.Reply
Cloud want performance w/ low TCO. Intel is done. -
BonScott Reply21486494 said:OEMs deserve the results from what they have been doing, almost solely relying on the one source, Intel!
Intel bribed and strong-armed the handful of OEMS that existed last decade to NOT sell PCs with AMD CPUs. Michael Dell almost went to jail for not disclosing INtel kickbacks.
AMD almost went BK, lost their fabs, then made bad CPU decisions and CPUs but were also ALWAYS on a smaller node since then. Re-hired Jim Keller and Raja Koduri in 2012 and 2013 (now both at Intel). And they are now conquering Intel in the one area EVERYONE thought was IMPOSSIBLE, Servers (and now Cloud).
The OEMs and components suppliers that also got squuezed by Intel's stolen monopoly know Intel well, its payback, there will be no tears for Intel.