Published in PC Hardware

Intel admits it cocked up over chip shortage

by on24 December 2018

Will work better with channel partners to sort it out

While many Intel fanboys have denied that there ever was an Intel chip shortage, Chipzilla has fessed up and admitted it cocked up.

Intel's channel flannel organisation is vowing increased communication and transparency with partners on issues such as the current CPU shortage, which has caused delays, price hikes and other challenges this year.

Todd Garrigues, director of partner sales programmes at Intel (pictured), told CRN that Intel needed better transparency about supply issues, new business opportunities and new technologies are one of the company's top priorities for partners heading into 2019. "We got some feedback -- some critical feedback if I'm honest -- from some partners through our advisory boards, and we're working hard to make sure we do better at that", he said.

"The request, bluntly, was to work harder at being transparent as close to real time as possible. And we took that to heart -- a lot of internal discussions on how we enable that."

One of the challenges, Garrigues said, has been engaging with Intel's broader base of partners that the company may not have one-on-one relationships with. To mitigate the problem, Intel is investing more in its relationships with distributors to boost Intel's signal.

"One of the big priorities I've placed on this year is working very close with our distribution partners who do serve that broad channel base more directly," said Jason Kimrey, Intel's U.S. channel chief. "I would tell you that we have much more direct, open transparent dialogue with them to help them plan and help our mutual customers plan to roadmaps and plan around the supply."

Intel has talked about this before. The outfit provided an open letter with a supply update to customers and partners last September.

It warned suppliers that it was taking the following actions:

  • Investing $15 billion in capital expenditures in 2018, up approximately $1 billion from the beginning of the year. We’re putting that $1 billion into our 14nm manufacturing sites in Oregon, Arizona, Ireland and Israel. This capital along with other efficiencies is increasing our supply to respond to your increased demand.

  • Making progress with 10nm. Yields are improving and we continue to expect volume production in 2019.

  • Taking a customer-first approach and working with partner teams to align demand with available supply.
Last modified on 31 December 2018
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