Intel is pressuring notebook and PC manufacturers in the U.S., China, and Taiwan to build more systems around its 18A-based processors, according to a Nikkei Asia report published today. The company has effectively frozen additional supply of older Intel 7-based CPUs for the consumer market, multiple industry sources told the publication, leaving OEMs with the choice of designing around 18A or going without.
Go deeper with TH Premium: CPU
Intel has also reportedly redirected its constrained Intel 7 capacity toward server and industrial customers, where margins are significantly higher. One consumer PC executive told Nikkei Asia that industrial-use CPU margins run roughly 20% above consumer equivalents, and that obtaining further Intel 7 allocations has become effectively impossible.
Another exec described placing an order for 100 Intel 7 processors and receiving just 30, with 10 of those being unrequested 18A-based chips. “We were told if we don't take the 18A CPUs, they would be given to other PC makers.” Intel, in a statement to Nikkei Asia, described its Core Series 3 processors as “integral” to its client strategy but didn’t confirm whether it is actively steering clients toward 18A adoption.
Many PC makers had originally built only a handful of 18A-based models to support Intel's launch rather than in response to consumer demand, the report claims. "Frankly speaking, PC makers designed a few models based on 18A last year mainly as a favor to Intel, as the chip is expensive and the market demand is relatively small because it is too premium," another source told Nikkei Asia.
According to this report, that’s now changed, however, as OEMs that want CPU allocation are effectively being forced to redesign more of their lineups around the newer, pricier silicon. These designs, per one executive, will take “at least three months” to complete and verify, and the shift to premium CPUs also forces upgrades to displays, sensors, and other components to justify the price tag.
S.Y. Hsu, co-CEO of AsusTek, confirmed during a recent earnings call that the company is prioritizing shipments of higher-end models in response to CPU and memory chip supply pressure.
Counterpoint Research analyst Brady Wang told Nikkei Asia that demand continues to outpace supply, and that some of that pressure may be offset by weakening PC demand overall. Some in the industry expect a year-on-year decline of more than 15% as component costs rise.
Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.





