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Intel says it will ramp up data center chip production very soon

data center
(Image credit: Shutterstock)

Technology giant Intel has announced that it is set to ramp up production of a new data center processor. The admission suggests that the company’s new active investor, Third Point, is having an influence on the company’s long-term strategy.

Although Intel remains the world’s biggest manufacturer of central processors, whether for PCs or data centers, the company has been struck by delays that have allowed its competitors to gain valuable market share. In particular, the company has struggled to increase production of both its 10-nanometer chip and its next-generation 7-nanometer processor.

Intel has confirmed that a new generation of chipmaking tech will form the foundation of its output in 2021, with further details expected to emerge in the company’s earnings call, which is set to take place on January 21.

Investor pressure

In exciting news, Intel added that its Ice Lake server chips would scale up production this quarter – although no specific figures were announced. The company also confirmed that 50 new processor designs for PCs would be unveiled later this year, with 30 using the firm’s 10-nanometer technology.

At the end of last year, it was revealed that Third Point had sent a letter to Intel’s chairman, Omar Ishrak, questioning whether the company should keep chip design and production within a single business unit. The letter was viewed by many as a push for wider-scale changes at Intel.

Intel’s announcement of a production increase will certainly have a major impact on the company’s strategy for the rest of the year but initially it may struggle to gain much audience traction. The firm has plenty of other news being pushed at the moment, with a number of new solutions being revealed at CES 2021.

Via Reuters