“Supply remained constrained particularly at the value end of our product range,” says Swan, “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 mid-year.”

Swan indicates that Intel is prioritising server chips.

So the shortage of PC CPUs is the direct result of heavy demand for 14nm Xeon server CPUs.


However Xeon customers are thought to have stockpiled chips and the demand for Xeon CPUs  is expected to weaken until the second half of 2019,  releasing capacity for PC CPUs.