Intel CEO Pins CPU Shortage on the Company's Aggression

Credit: Peter Gudella / ShutterstockCredit: Peter Gudella / ShutterstockIntel could blame its CPU shortage on a variety of factors. The repeatedly delayed introduction of its 10nm process, the underestimation of commercial PC sales, and the desire to focus more on enterprise customers all contributed to the company's supply issues. Intel CEO Robert Swan added one more factor to the list at the Fortune Brainstorm Tech conference on Tuesday: its decision to be overly aggressive.

Swan reportedly told attendees the shortage was "somewhat a function of what we've been able to do in the past, which in essence was defying the odds," and that "at a time when it was getting harder and harder" the company "set a more and more aggressive goal." Intel had gotten used to being able to squeeze blood from rocks--or in its case money from silicon--but couldn't quite repeat the feat.

That failure resulted in the company loosening its grip on several commercial markets. Laptop manufacturers, Chromebook makers, and enthusiasts alike started buying their CPUs from AMD when they realized Intel's shortage wasn't going to end any time soon. Now that AMD managed to get a hold on those markets, it wouldn't be surprising if manufacturers continued to use its processors in their products.

Intel's processor shortage affected much of the industry at large, too, and is widely believed to have affected sales of many device categories. That's probably why Swan apologized to the company's partners in April, saying that Intel has "committed never again to be a constraint" on its customers. He told Fortune's conference-goers that the company was making some changes to realize that promise.

Swan reportedly said that he wants to "pull [the] entire company together" via "more truth and transparency and the free flow of information." Like many CEOs appointed during a crisis--Swan replaced Brian Krzanich as interim CEO in June 2018 and was named CEO in January--he's also committed to changing the company's culture. Hopefully that will be enough to prepare Intel for the years ahead.

Intel said in April that it expected the CPU shortage to ease up a bit in the third quarter of 2019; DigiTimes reported in May that supplies could improve as early as June. Recent analysis from Gartner and IDC suggests that rising PC shipments in the most recent financial quarter resulted at least partly from increased availability of Intel processors, so things might improve on the CPU front sooner than later.