CPU

Intel's 45-Nanometer Chips are Running Short - 20% Price Increase

OEM and PC vendors can't just get enough of it

By Bogdan Botezatu, Hardware Editor

1st of February 2008, 09:43 GMT

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Intel has recently launched its new 45-nanometer E8000 series of processors, but reports have it that the Taiwanese market is already running short of supplies. The Taiwanese OEM and PC vendors cannot face

the increasing demand in the 45-nanometer processor, and prices have suddenly increased up to 20 percent more than at launch date. The IT industry usually cuts down prices for hardware shortly after they have been unveiled, as they ramp up production and cut down manufacturing costs.

The E8000 series CPU was introduced back on January the 20th. Thanks to its new manufacturing process with infused hafnium, the processor can deliver more performance while keeping its power requirements to a minimum. According to industry sources, Intel is monitoring the 45-nanometer CPU shipments and will try to diminish the impact on the E6000 CPUs sales. This means that Intel is strategically axing down the E8000 shipments in order to favor the E6000 sales, that suddenly have become less interesting.

The shortage made the E8000 series of CPUs a rarity on the Taiwanese market, and rarities are treated as such. The processors' sales price has suddenly increased by about 20 percent. For instance, you can buy an E8400 processor for about $257, while it was initially sold for about $210. Moreover, some of the PC shops in Taiwan would sell the E8000 series CPUs cheaper than $257 if only the user agrees to buy a system with specific hardware.

Although the E8000 processors are extremely rare and expensive, the E6000 CPU sales did not bloom overnight. On the contrary, the processor gets less and less appreciation on the market. This is a normal market reaction, since the E8000 processors are tremendously improved as compared to the E6000s, so the Taiwanese consumers would rather wait for fresh shipments of the former than spend their money on the low-performing E6000.

The E8000s are expected to arrive in small volumes starting the next month. The volumes it will be shipped in will be calculated in respect to the existing E6000 supply.

TAGS:

Intel | 45-nanometer | E8400 | E6000 | shortage

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