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Intel faces supply constraints with Core Ultra Series 3 processors

Engadget •
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Intel appears to be experiencing production bottlenecks with its Core and Core Ultra Series 3 processors, potentially limiting laptop availability for consumers. Former Bloomberg reporter Tim Culpan reports that major PC manufacturers are dealing with chip shortages while Intel simultaneously pushes them to adopt the new silicon. The supply constraints come as Intel urges partners to transition away from older Alder Lake and Raptor Lake chips.

These Series 3 processors represent Intel's first chips manufactured on its 18A process, marking a critical step in the company's attempt to reclaim manufacturing leadership. However, Intel's strategy faces complications since both the older chip generations and components for the new processors rely on TSMC, the world's largest contract chipmaker. This creates an awkward dependency for Intel as it competes with its supplier.

The supply crunch could intensify with Intel's recent launch of the Xeon 6+ server chip, which also uses the 18A process. While an Intel executive acknowledged shortages exist, the company claims it's working to resolve them. This situation highlights Intel's ongoing challenges in balancing its manufacturing ambitions with market demands.

For consumers, this means potential delays in accessing new laptops featuring Intel's latest processors, while the industry watches whether Intel can successfully navigate its transition to in-house manufacturing without alienating key partners who depend on TSMC for critical components.