Chipmaker Intel Corp. is delaying production of one of its newest chips to improve performance, the first significant product setback under new CEO Pat Gelsinger as it seeks to rebuild the company’s competitiveness.
Intel now plans to start producing the next generation of server central processing units, the brains of those machines, in early 2022 after previously saying it would be ready later this year, Lisa Spelman, the company’s corporate vice president, who manages the server. -chip business, he said in a blog post Tuesday.
The additional time, Ms Spelman wrote, would allow Intel to improve chip performance, particularly around valuable AI processing and data handling metrics. Production is now scheduled to start in the first quarter of next year and increase in the second quarter, he wrote.
The delay in the new chips is a first for Gelsinger, who became CEO in February after significant delays in chip-making progress with his predecessor, Bob Swan. Intel said nearly a year ago that the next generation of even more advanced chips with super small transistors wouldn’t be ready until late next year, about a year later than initially expected.
The server chip market is one of the largest, fastest growing and most competitive in chip manufacturing. Intel generated $ 5.6 billion in revenue from its data center business in the first quarter, about a quarter of all sales.