PC manufacturers have to switch to expensive 18A chips due to a shortage of old Intel processors

Short overview of the situation with Intel processors

- High demand for server chips

Intel’s server processors are in huge demand, allowing the company to profitably sell even “stale” batches of product. However, this leads to a shortage of microchips in adjacent segments.

- PC market saturation with 18A technology

To compensate for the lack of chips for personal computers, Intel is actively promoting processors made with cutting‑edge 18A technology. These models are less prone to shortages than those on more mature process nodes (e.g., Intel 7).

- Production priorities

When releasing chips on Intel 7, the company prioritises the server market and industrial PCs. As a result, far fewer consumer processors (Panther Lake, Wildcat Lake) are produced. Additionally, some Arrow Lake wafers are made at TSMC, where high utilisation also limits availability of these chips.

- Issues in the industrial segment

Chips for industrial automation bring Intel roughly 20 % more profit per sale. Therefore shipments are often directed to that market rather than consumer.

- Cost and laptop adaptation

18A processors are pricier but have better performance. Laptop manufacturers find it hard to justify purchasing them, yet they have little choice – Intel remains the sole supplier. New chips are frequently sold “on load” alongside more mature models, forcing PC makers to redesign their devices. Preparing for new processor adoption can take up to three months, exacerbating shortages.

- Business impact

PC manufacturers note that a missing CPU has a more serious effect on sales than a lack of memory. Even if memory capacity can be reduced, a laptop won’t sell without a CPU.

- Market and forecasts

According to Mercury Research, Intel holds over 70 % of the x86‑compatible processor market for PCs in the last quarter. Rising prices due to shortages are expected to dampen demand for personal computers, but the problem will not disappear entirely. Some experts predict PC sales to fall by about 15 % this year.

Thus, high server chip sales and production priorities create a chain of shortages that affect both consumer and industrial segments of Intel’s processor market.