CPU shortage is reportedly 'more acute' than memory, as the industry banks on Intel 18A

The global semiconductor shortage is in full swing, and it seems like no PC component is safe. After the crippling DRAM shortage that led to memory prices skyrocketing, Intel raised CPU prices not once but twice, citing a demand-supply mismatch. AMD quickly followed suit with a 15% price increase across its various lineups. However, it seems there is light at the end of the tunnel for those waiting for CPU prices to drop.

A Digitimes report quotes industry insiders who say the ongoing CPU shortage is "more acute" than the memory shortage, suggesting it will not be as long-lasting as the DRAM shortage. We recently reported the words of SK Group chairman Chey Tae-won, who claimed that the ongoing DRAM shortage could last until 2030. While that is a harrowing thought, it seems like CPUs are not going to follow the same trend.

The savior? Intel. The industry is banking on Intel's 18A process node to ramp up production and alleviate some of the demand. TSMC is effectively slammed right now, and there seems to be no respite coming for their customers anytime soon. In the meantime, Intel has started production on its 18A node with Panther Lake CPUs, and Wildcat Lake has followed suit recently. The 18A process has had a hard time getting up and running, but now it seems like Intel will have to double down on it for its own good, and for the industry's.

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Analyzing the market a bit, it is interesting to note that while the memory shortage is reported to be worse than the CPU one, RAM is still available despite its ridiculous pricing. CPUs, on the other hand, are quite difficult to find in stock. Digitimes' sources also report that the worst-affected CPU lineup is Intel's Raptor Lake series, which is plausible given its popularity among value hunters.

It must be said that Intel's 18A process node cannot be the sole savior that pulls the entire industry out of this problem. TSMC is still a crucial part of the supply chains of both Intel and AMD, and, for that matter, NVIDIA. Intel's Panther Lake CPUs also rely on TSMC for their I/O die and other secondary components, so it is not a totally independent operation.

However, Intel's CEO, Lip-Bu Tan, reportedly remains confident that, despite initial yields being below expectations, the 18A process node will ramp up production in the coming months. It remains to be seen whether Intel's in-house production will be the knight in shining armor that saves the industry from the impending "CPUpocalypse".