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Intel's processor shortage is poised to claim another victim. DigiTimes reported today that Compal, the world's largest laptop original design manufacturer (ODM), is expected to see a supply gap between 10 and 20 percent in the first quarter of 2019. due to the current shortage of Intel's 14nm CPUs.
That deficit comes even as Q1 is typically the slowest of the year. Ray Chen, Compal president and vice chairman, told DigiTimes Compal expects the gap to widen in Q2, when notebook shipments are expected to rise. The biggest impacts are on the education segments, but Chromebooks and entry-level laptops are also effected, according to the exec.
But Intel hasn't increased production of the 14nm CPUs used in those devices. That means Compal and other companies have to figure out how to meet demand for these products despite lacking the processors needed to do so. Enter AMD.
'To ease the pressure, Compal has also been increasing its adoption of AMD's solutions in its notebooks and servers," DigiTimes said, citing Weng.
We've noted a few times that companies seem more willing than ever to experiment with AMD processors as a result of the Intel shortage. Some manufacturers have elected to wait for Intel's production to increase, but many have turned to AMD.
AMD has capitalized on this opportunity by introducing CPUs made specifically for these markets. When it announced new processors at CES 2019 in January, for example, it revealed two Athlon A-Series models meant to be used in Chromebooks. Manufacturers, including Acer and HP were quick to embrace the company's new offerings.
Enthusiasts have also warmed up to AMD's processors in recent months, especially in certain parts of Europe, where AMD is on track to surpass Intel's market share.
Intel has been working to address its CPU shortage, but the problem isn't expected to ease up until Q3, when notebook demand rises even more. especially in the education market, since many students are heading back to school.