Intel Doesn't Have Enough 32nm CPUs

Though being too good for one's own good doesn't happen very often, Intel seems to be going through this very type of situation with its 32nm central processing units. Being central processors with not just high computing power and efficiency but also on-die graphics, the Arrandale and Clarkdale chips have been showing up in almost every new laptop and desktop. Consequently, PCs based on them have been selling constantly and, pushed by the steady economic recovery, demand has increased compared with previous years.

This, of course, is a very good outcome for Intel, especially considering the initial skepticism surrounding the combination of 32nm CPU and 45nm GPU. However, this also seems to put the Santa Clara, California-based chip maker in a tight position where it cannot keep up with demand, even though the 32nm process is supposedly the fastest ramping in the company's history.

Even as early as March, Core i3 and Core i5 CPUs were in short supply and, in April, the Core i5-430M, i3-330M and i3-350M were especially affected, according to US electronic distributor Converge, X-bit Labs reports. This made Intel limit the number of OEMs to which it sent its processors, which means that, while the shortage was not market-wide, it affected certain niche or big players.

“Throughout March we were tracking sporadic large demand on these parts while supply was severely restricted. It is unusual to find a device shortage that cannot be solved in the open market, but in March the off-road-map Arrandale was in short supply and demanding a 20% premium above its contract price. This shortage looks to continue through April. However, many manufacturers remain unaffected as they continue to utilize the Intel Montevina processor family, where supply remains healthy,” Converge said in its recent market update.

The market most affected was the mobile front, where new product launches and growing consumer interest drove sales upwards. This means that, with Intel increasing its 32nm supply in the coming weeks, desktop shortages should cease to exist, but notebook parts may not necessarily reach the required inventory levels.

“We believe the Arrandale shortage must ease soon or it will have a prolonged effect as the entire manufacturer base may ‘swap-out’ to the newer models,” Converge concluded.