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Intel postpones first 7-nanometer client CPUs until late 2022

Intel postpones first 7-nanometer client CPUs until late 2022

The first server chips manufactured using the 7-nanometer process will follow in the first half of 2023. Intel has to fix a bug in the new production process that reduces the yield. Despite an increase in sales and profits, the price of Intel shares crashes.

Intel has presented a new CPU roadmap together with the current quarterly report. The company postpones the start of the first client products, which are manufactured in a 7-nanometer process, by six months to the end of 2022 or even the beginning of 2023. The first 7-nanometer CPU designs for the data center should now be in the first half Be available in 2023.

Lakefield (Image: Intel)The reason for the delay is an error in the 7-nanometer production process, which reduces the yield. Intel says it is currently twelve months behind its original plan.

“We have thoroughly investigated the problem and believe that there are no fundamental obstacles,” said Intel CEO Bob Swan. “But we also invested in contingency plans to protect ourselves against further schedule uncertainties. We have mitigated the impact of process delay on our product schedule by leveraging improvements in design methodology. ”

Intel is currently still struggling to convert its production to a 10-nanometer process, the start of which has also been postponed several times. “We already know the film,” Swan admitted. “We have learned from the challenges of switching to 10 nanometers and we are taking a milestone-based approach to ensure that our competitiveness is not affected by the product roadmap.” If necessary, external producers will be used.

Instead, Intel is now focusing on introducing new 10-nanometer processors like Tiger Lake and launching the first 10-nanometer server CPU, Ice Lake, at the end of the year. AMD announced the first 7-nanometer processors with integrated Radeon graphics this week.

Investors reacted to the announcement yesterday after the market closed by selling shares. As a result, Intel’s share price plummeted 10.6 percent, or $ 6.40, to $ 54.

The actually positive quarterly figures were also unable to stop the share price from falling. Intel generated $ 19.7 billion in the second quarter, 20 percent more than in the same period last year. The company also made significant gains. $ 5.1 billion represents an increase of 22 percent. Both categories also significantly exceed analysts’ expectations.

“It was an excellent quarter that far exceeded our expectations of continued strong demand for computing power to support cloud-based services, a work and learn-at-home environment, and the expansion of 5G networks,” said Bob Swan. “In our increasingly digital world, Intel technology is essential for almost every industry on this planet.”

In the data center area, which also includes the Data Center Group, the IoT Group, the Non-Volatile Memory Solutions Group and the Programmable Solutions Group, Intel improved by 34 percent. PC sales, however, only increased by seven percent. Data center products thus accounted for 52 percent of group sales – in the same period last year, PC products still dominated the result with 54 percent.

In the current third quarter, Intel anticipates $ 18.2 billion in sales and GAAP equity earnings of $ 1.10. Wall Street predicts $ 1.14 per share on earnings of $ 17.9 billion.

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