Intel chief expects chip supply to improve by mid-2019; company reports US$70 billion revenue

Bob Swan was previously Intel's CFO before becoming interim CEO. (Source: Intel)

Intel’s current interim CEO, Bob Swan, has stated in an earnings call that he expects the company’s chip shortage to ease by the middle of the year. However, focus is expected to be on producing high-performance processors whilst the supply of “value end” silicon will remain limited. Intel also reported revenue of US$70.8 billion for 2018, up by 13% from 2017.

Daniel R Deakin, 01/26/2019

Bob Swan, who is currently acting as Brian Krzanich’s replacement as Intel’s CEO, has offered up some information in an earnings call in relation to the chip shortage timeline. It has been well documented that Intel suffered from a production shortage in 2018 that has affected some OEMs. It seems the manufacturer intends to keep prioritizing server and “big core” products while lower-value chip supply will remain restricted until the middle of 2019. This is what Swan had to say about the issue:

Supply remains constrained, particularly at the value end of our product range. We are working closely with our customers to align demand with available supply, while we add capacity. And we expect supply demand balance to improve by midyear.

Intel reported some positives in the highlights from the 2018 full-year financials. This included US$70.8 billion GAAP revenue, up from US$62.8 billion in 2017, and operating income of US$23.3 billion, which was up 29% in comparison to the previous year. The chipmaker also accrued US$29.4 billion in cash from operations, which makes one wonder how much the firm could have made without the chip shortage.