Intel Reportedly Improves Desktop Skylake Supply as 14nm Yields Get Better
For the past few months, Intel has apparently been struggling to meet demand for its high-end enthusiast-oriented processors based on the latest Skylake architecture. The Skylake itself is built on the 14-nanometer process, and the supply issues are believed to be due to relatively low manufacturing yields on this new process.
That said, Intel finally seems to have things working its way as the supply of their top desktop Skylake processors appears to be getting better. For evidence, Intel’s top Skylake-based Core i7 6700K, according to NowInStock.net, has been in-stock over at Newegg.com for a more than three days. The product became available to purchase on the site on Dec. 29 and it has been in-stock since then.
That’s surprising given that in the past, Newegg.com had troubles keeping these chips in stock for more than a day. In fact, at times the Core i7 6700K would go “out of stock” about an hour after it became available for purchase!
According to The Motley Fool’s Ashraf Eassa, the improved supply of chips indicates better 14-nanometer yields, which is a great news for Intel’s core business segments. In mainstream PC market, improved yields mean improved product cost structures, thereby adding to gross profit margin.
For high-end PCs and the server market, Intel has already indicated that it’s expecting its product cost structure in these segments to escalate as a result of transition to 14-nm process in 2016.