In response to recent questions in the capital market about the manufacturing process and supply capabilities of Intel’s 10nm chips, Intel CFO and interim CEO Bob Swan issued an open letter to respond.
Bob Swan acknowledged in the letter that the strong growth of the PC market put pressure on Intel’s supply chain, Intel has to give priority to the production of Xeon and Core processors to meet the needs of the high-end market. This has led to tight supply of Intel related chips in the entry-level PC market. But Intel still believes that it has enough supply to meet this year’s revenue target.
Intel also proposed three solutions: adjusting the capital expenditure for 2018 to $15 billion, an increase of $1 billion from the plan at the beginning of the year. Incremental funding will be invested in 14nm chip production sites in Oregon, Arizona, Ireland and Israel to boost existing chip production to meet demand. In addition, Intel will make faster progress in the development of the next generation of 10nm chips, and it is expected to achieve mass production in 2019.