Intel to slash CPU shipments do DIY channel in Q4 2018 by 2 million units

Word is going around that Intel is going to cut production of desktop processors to be able to increase the number of laptop and server processors it can ship this quarter. Industry sources told DigiTimes that the PC DIY distributor market will be getting a lot fewer processors this quarter. The site heard Intel will reduce DIY desktop processor shipments by as many as two million units in Q4 2018, to a level of just 6 million unit. This may lead to a 10-20 percent decline in motherboard shipments by Taiwan's motherboard makers.

The sustained mining chill seen since April 2018 caused revenues of supply chain players to drop remarkably, driving up inventories of both mining graphic cards and motherboards. This, coupled with the deferred launch of Nvidia's new GPU platforms, Intel's processor supply shortages and lackluster terminal buying sentiment, resulted in most suppliers posting lower-than-expected revenue and profit performances for the third quarter, traditionally a peak season, according to industry sources.

Intel is taking this unusual measure because the company's 14nm capacity is completely utilized. The long delay of its 10nm production capacity coupled with continued high demand is resulting in a shortage of 14nm chips. At the moment, it looks like the shortage will persist into Q2 2019.