Recently, Intel Corporation (NASDAQ:INTC) declared it was expanding its reliance on contract chip manufacturers. This is the reason to ramp up the supply of chips used in personal computers.
Moreover, the firm struggles with shipment delays amid higher demand.
In a statement, Intel (NASDAQ:INTC) stated that the supply remained “extremely tight.” Even though the corporation has developed its manufacturing capacity and boosted the second half of its P.C. chip supply.
The capacity was double on digits contrary to the first half.
Meanwhile, the chipmaker disclosed in a letter, “Despite our best efforts, we have not yet resolved this challenge.” This is where it has also expressed regret to its consumers and affiliates for the delays.
In October, Intel (NASDAQ:INTC) believed that the demand in the P.C. business was surpassing its ability to improve capacity. It was also contemplating outside chip makers.
Shares of the chipmaker, which reiterated its guidance for the fourth quarter, were down 1% after market trading.
The financial forecast was issued a month ago, but the firm confessed it continues to struggle. The difficulty has to do with delivering personal computers to its customers who have already ordered.
Moreover, Intel (NASDAQ:INTC) signaled new manufacturing difficulties.
In a written letter to customers posted on Intel’s website, Intel (NASDAQ:INTC) marketing Vice President Michelle Johnston Holthaus said, “I’d like to acknowledge and sincerely apologize for the impact recent P.C. (processor) shipment delays are having on your business and thanking you for your continued partnership.”
Holthaus added, Intel (NASDAQ:INTC) has suffered indefinite “production variability” this fall, which is worsening the shortages.