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Intel says PC chip production capacity will be boosted this year

Posted on Friday, January 24 2020 @ 09:42:04 CET by


Intel
Speaking to Reuters, Intel CFO George Davis signaled that the chip industry is turning around after a prolonged slowdown. The chip giant saw its cloud computing chip sales skyrocket 48 percent year-over-year in Q4 2019, a trend that's expected to keep up this year. Intel is seeing very strong demand from cloud players:
Davis did not name specific customers, but so-called “hyperscale” cloud providers such as Amazon Web Services (AMZN.O) and Microsoft Corp (MSFT.O) in the United States and Alibaba Group Holding (BABA.N) and Baidu Inc (BIDU.O) all purchase Intel chips for data centers whose capacity they rent out to large businesses.

“What we’re seeing is very strong demand from cloud players,” Davis told Reuters. “I have to give credit to the hyperscalers for this quarter.”
Davis also said that Intel expects to output more PC processors this year. The company expects the gap between customer demand and supply will be closed this year, thereby ending the two-years long shortage of lower-margin Intel products.



 



 

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