Intel shifts Panther Lake capacity to data center chips while the memory crisis wreaks havoc on PC market; still sold out of budget Wildcat Lake chips

The memory crisis is causing significant challenges for Intel, with prices for memory and storage continuing to rise, making it difficult to sell computer chips to consumers. In response, Intel CEO Tan stated that the next few quarters will be challenging for the PC market. As a result, the company is shifting some of its 18A capacity from Panther Lake chips, which are not selling well, to data center chips instead.

CFO David Zinsner confirmed that they will be taking offline 18A wafers to produce more data center chips, with Panther Lake products being built on the remaining capacity. At present, there are two consumer chip families on the 18A node: Panther Lake and Wildcat Lake. While Panther Lake has successfully ramped onto 18A, Wildcat Lake, the more recent budget offerings, is reportedly selling strongest.

The shortage of Wildcat Lake chips is particularly severe, with Zinsner stating that the demand has increased by approximately 70% sequentially and they are currently sold out. The company also mentioned that substrate constraints are affecting their supply. Intel suggests that 2027 may not be an easy year, with the internal CCPG group, which covers gaming chips, likely declining by more than 20% sequentially due to companies reducing inventories and orders for the new year.