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Intel Cuts CPU Shipments by 2M, Motherboard Makers May Suffer - Report

According to a DigiTimes report today, Intel will reportedly cut CPU shipments to the PC building sector by 2 million units in Q4 2018. The supply shortage could also lead to a significant decline in motherboard shipments by Taiwanese manufacturers that quarter, the publication's unnamed sources said. 

According to DigiTimes’ "industry sources," Intel had to reduce shipments of desktop CPUs in order to prioritize the server and notebook market. The company will reportedly cut the shipments of desktop processors to only 6 million, down from an initially expected 8 million units.

Intel has previously blamed the 14nm CPU shortage on increased demand, even though all signs point to Intel not being able to meet even regular demand due to the all the issues it's been having with its much-delayed 10nm process node. The new report seems to confirm that Intel’s problem wasn’t one of having significantly more demand for its chips, but one of not being able to make as many chips as it originally planned. 

Motherboard Makers Will Also Suffer

DigiTimes also reported that Taiwanese motherboard makers will suffer a significant decline in shipments of 10 to 20 percent, thanks to Intel’s CPU shortage.

Tul, a Taiwanese motherboard vendor, is expected to suffer operating losses in Q4.

Gigabyte shipments for the quarter are also "expected to drop to the levels seen before the emergence of the cryptomining craze that peaked in the first quarter of 2018," the publication said.

It believes Asus' revenues will remain flat in Q4, but the company has already seen operational visibility for the quarter drop.

MSI is expected to be the only Taiwanese motherboard maker to see strong revenue performance, DigiTimes said, mainly because of strong demand for gaming motherboards and graphics cards.

The publication also pointed to Nvidia’s RTX GPU platform's failure to bring a large enough boost in price-versus-performance over previous cards as playing a role in low expectations for motherboard shipments in Q4.

  • wownwow
    Being able to keep about the same revenue as the Q3 with a reduction of 2M units, what a $ printing machine Intel is!
    Reply
  • redgarl
    You didn't wanted to promote AMD, just too bad for you.
    Reply
  • bjornl
    While I prefer Intel's processors, this just means that I am going to recommend people consider AMD instead. The performance difference is not that far off even in a best case for Intel (lower max thread count operations, such as gaming). And for other tasks which are highly parallel or in scenarios where users like to run a lot of apps at once, AMD is just plain better.
    Reply
  • redgarl
    21489714 said:
    Being able to keep about the same revenue as the Q3 with a reduction of 2M units, what a $ printing machine Intel is!

    They were just entering their shortage stage, now they are fully plague by it, and it might be in effect for almost a year. Analyst are saying that PC hardware sales might be impacted by it...

    Guess what, AMD is right there and they offer the best bang for the bucks. It's their fault for not diversifying and promoting their portfolio.

    Reply
  • redgarl
    21489797 said:
    While I prefer Intel's processors, this just means that I am going to recommend people consider AMD instead. The performance difference is not that far off even in a best case for Intel (lower max thread count operations, such as gaming). And for other tasks which are highly parallel or in scenarios where users like to run a lot of apps at once, AMD is just plain better.

    Well, it is really hard to recommend a CPU that is 30-50% above the MSRP. It doesn't matter which company it is, it is plain absurdity.

    The other absurd thing is the industry not selling the other product, that is on sale, available and competitive.

    Reply
  • mike8vettese
    I am glad mine is in the mail on my way to me now. I am glad I didn't listen to the people when they said do not pre-order. I already waited an extra few weeks. But yeah, when they say Intel has a shortage people don't realize the percentage they already had sent out. Every company has their lag period. Intel finally hit theirs after many many years. AMD can shine for a little while.
    Reply
  • spentshells
    I like the word suffer being used when describing something as benign as a Corporation seeing less business due to the actions of another Corp. Sensationalism.
    Reply
  • s1mon7
    There has never been a time like today to buy an AMD chip. Or Zen 2, since Intel will still be under the shortage then.
    Reply
  • BonScott
    The Mafia Semiconductor company known as Intel is busy defending their castle and LOSING. The rest of supply is low priorty. I don't care what Intel's boos say, Most profits are Servers, and they are in trouble.

    Cloud orders are more than half of all servers, Amazon alone is 26% of Cloud. This Analyst close to Amazon says they are going to achieve much higher margins on their Cloud business over the next four years. Now that could have anything to do with Epyc and Rome SUPERIOR TCO could it?

    https://www.barrons.com/articles/amazon-to-see-soaring-profits-from-cloud-computing-evercore-says-1542217697

    https://www.businesswire.com/news/home/20181106005598/en/AWS-Introduces-New-Amazon-EC2-Instances-Featuring
    Reply
  • BonScott
    Is a low TCO a good thing for all this Cloud stuff? And who is this Oracle company?

    https://blogs.oracle.com/linux/amd-at-oracle-openworld-2018
    Reply