Intel suffered a significant stock drop last week as investors sold off shares after the announcement that their new 7nm processor manufacturing has been delayed by 6 to 12 months.
After years as the top dog in all CPU categories, Intel used to release new generations are their own pace due to a lack of competition in the industry. But rival AMD has been upping the ante in recent years and has even surpassed Intel in some areas.
The pressure has been on Intel to bring their new 7nm CPU’s to the market as the next step in their technical advancement. However they were forced to announce a disappointing delay for this much anticipated update.
Intel representatives informed the media that the cause for the delay is due to flaws in the manufacturing process leading to less than desirable yield, and that the issue is being addressed but it won’t be corrected in time to reach their previously expected release.
According to Intel CEO Bob Swan, “We now expect to see initial production shipments of our first Intel-based 7nm product, a client CPU in late 2022 or early 2023. We are also focused on maintaining an annual cadence of significant product improvements independent of our process roadmap, including the holiday refresh window of 2022. In addition, we expect to see initial production shipments of our first Intel-based 7-nanometer data center CPU design in the first half of 2023.”
In the meantime, that gives AMD a perfect opportunity to gain an even stronger foothold in the premium CPU market.