Novatech, the British PC maker and components supplier, has warned that the Intel CPU shortage is set to cause an imminent spike in prices - and will even affect the forthcoming launch of Intel's ninth generation Core microprocessors.
In the warning to customers today, Novatech said that the shortage has been caused by high demand for Intel Xeon microprocessors in the datacentre, which Intel has chosen to prioritise over consumer and business PC demands.
Available supply of PC microprocessors, meanwhile, has been scooped up by vendors looking to supply non-price-sensitive customers.
The lack of supply has caused pricing to soar over the last two weeks
"There is currently a drought for Intel's central processing units," explained the Novatech missive.
It continued: "The increase in demand for Intel's CPU's is the result of datacentres demanding more of Intel's Xeon processors, overworking their capacity and leading to a severe technological drought of certain crucial products. This has saturated Intel's production capacity.
"The lack of supply has caused pricing to soar over the last two weeks.
The eagerly anticipated 9th generation launch will also be hit by this and will be in scarce supply
"Traders are buying CPUs from websites and anywhere that they can in order to capitalise on the market situation and fulfill the demand for non-price sensitive customers. The result of this is [that] consumers and business customers alike will see an increase in the cost of CPU's."
"The situation is not set to get any better and we expect to see Intel CPU shortages for the rest of the year. The eagerly anticipated 9th generation launch will also be hit by this and will be in scarce supply."
The situation will only improve in 2019 at the earliest, it added.
However, Intel's production problems will be AMD's opportunity, according to Taiwan electronics industry newspaper Digitimes, with the company possibly even grabbing a 30 per cent market share in the fourth quarter this year.
The increased market share of AMD is partly the result of its competitive Zen architecture, which has helped make its Ryzen CPUs a popular alternative to Intel; and partly down to the loosening of its ties with GlobalFoundries, enabling AMD to source its products from TSMC as well.
The new ties to TSMC will help AMD overtake Intel in terms of process architectures, with the company's second-generation Ryzen CPUs now being manufactured on 12nm processes and set to shift to 7nm very soon - while Intel struggles to make the leap from 14nm to 10nm.
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