Intel is experiencing problems with the production of 10 nm chips and its current 14 nm chips. Due to the delay of their 10 nm node, they had to continue using a 14 nm node, which saturated the production lines and had to focus on their high-end products.
Fortunately, Intel overcomes this stumbling block and on Thursday Intel said that its lack of “small core” microprocessors is decreasing.
On Thursday, Intel’s second-quarter results exceeded the company’s own expectations. Intel’s revenues fell 17% to $4.2 billion, while revenues fell slightly 3% to $16.5 billion. In part, this is due to inventory and production problems as the company made the transition to its 10nm products, including Ice Lake, which Intel previously said is now on the market.
Intel will increase its production of low-end CPUs as Ice Lake 10 nm approaches
Intel now has two 10 nm factories, said CEO Bob Swan. Intel lost a “small stake” in the second quarter as the company prioritized its higher-margin, large-core microprocessors. During this time, Swan said, Intel was unable to meet the demand for its cheaper chips. Now things are a little “normal” as we approach the launch of Ice Lake at 10 nm.
Intel expects the transition to the 7 nm Manufacturing Process Node in 2021. Intel expects its 7 nm value to seamlessly compete with the 5 nm technologies that AMD would already have by then.