PC manufacturers are forced to use more expensive 18A chips since Intel is out of older processors

Because of the high demand for server processors, Intel successfully sold most of its older inventory in such a way, creating a shortage in specific market segments. Now, the company is actively trying to promote its cutting-edge 18A technology.

Market Shortage and New Intentions of Intel

According to the insight information, Intel is planning to promote the latest processors for laptops and PC using the 18A process, mainly because it is less affected by the shortage when compared with processes such as Intel 7. Such consumer processors as Wildcat Lake or Panther Lake are less affected by the current market shortage.  

The production based on Intel 7 is mainly oriented toward the industrial PC segment and server market rather than consumer processors. Also, some of the chips for Arrow Lake-type processors are produced by TSMC for Intel, and TSMC is also constantly functioning under very high capacity. So, it is simply impossible to offer additional customer processors in the needed amounts.

Additionally, even the industrial automation components segment is also competing with the consumer market. Because Intel gets 20% higher revenue from industrial-grade processors, the priority is still not on the side of the consumer sector.

Now, Intel is almost forcing other companies to switch to more expensive and modern processors. Of course, this new technology offers access to much better performance characteristics, but laptop manufacturers have some challenges with the justification of the higher pricing. Also, manufacturers are facing one more problem – they need to adapt their products to the new processors, and the preparation can last even a couple of months.

Due to such a situation on the market, there is expected to be a huge decline of nearly 15% in PC demand because of the rising prices.

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