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It’s no secret that Intel has lost its competitive edge in the chip manufacturing industry. But the company is still facing enough demand for its processors that it’s talking about a shortage.
During a Q3 earnings call, Intel executives noted that customer demand has outpaced supply for server and PC CPUs. “The shortage is pretty much across our business,” said Intel CFO David Zinsner. The company also expects the tight supplies to persist into next year.
Specifically, the shortage involves the company’s older chip manufacturing tech, Intel 10 and then Intel 7, which has been used to fabricate “Raptor Lake” desktop CPUs, along with server-grade CPUs. Since the company isn’t investing in the older chip nodes, Zisner said, “as we get more demand, we’re constrained. In some ways, we’re living off of inventory.”
The demand is surprising since buyers typically want the latest chip tech; Intel itself has been using rival TSMC to build some of its newest chips, including last year’s laptop-focused Lunar Lake processors and the desktop-focused Arrow Lake line.
Intel’s older Raptor Lake desktop chips. (Credit: PCMag)
However, Intel says customers have been purchasing its server CPUs as companies rush to build new data centers to meet the surging demand for AI computing. The same AI demand has created shortages for the wafer substrate necessary to build computer chips.
Another factor is businesses migrating from Windows 10 to Windows 11, which may require new PC hardware. “The Windows refresh is happening more significantly than I think we expected,” Zisner said when asked why customers are focusing on Intel’s older products.
“And so Raptor Lake is also a product that addresses that,” he added. (We should note that Raptor Lake chips have been known to suffer from a voltage bug, although the company has addressed the problem.)
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For customers seeking the latest technology, Team Blue is preparing to release new PC processors utilizing its Intel 18A process—or what it hopes will turn around the company’s fortunes. During the earnings call, Intel CEO Lip-Bu Tan said the company remains on track to launch the first Intel 18A chip for PCs, “Panther Lake,” by year’s end, followed by additional processors during 2026’s first half.
For desktops, Tan added: “Our next-generation Nova Lake product will bring new architecture and software upgrades to further strengthen our offerings, particularly in the PC gaming halo space. With this lineup, we believe we will have the strongest PC portfolio in years.”
However, Nova Lake isn’t expected to arrive until next year. The desktop chips will also reportedly use Intel’s 18A node and rival TSMC’s chip manufacturing tech.
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About Our Expert
Michael Kan
Senior Reporter
Experience
I’ve been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I’m currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I’ve combed through FCC filings for the latest news and driven to remote corners of California to test Starlink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. Earlier this year, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I’m now following how President Trump’s tariffs will affect the industry. I’m always eager to learn more, so please jump in the comments with feedback and send me tips.
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