From Tom's Hardware: Intel this week reiterated that it cannot meet demand for all of its client and data center processors due to insufficient supply, and specifically mentioned that it could use more Core Ultra 200-series Arrow Lake and Lunar Lake wafers to increase shipments of appropriate processors. Logic tiles of both CPUs are made by TSMC, whereas packaging is performed by Intel in-house, so when placing orders with the foundry, Intel was more conservative than it should have been.
"If we had more Lunar Lake wafers, we would be selling more Lunar Lake, if we had more Arrow Lake wafers, we would be selling more Arrow Lake," said John Pitzer, Corporate Vice President of Corporate Planning and Investor Relations at Intel, at UBS Global Technology and AI Conference 2025. "I think we feel pretty good about where we are in the AI PC transition."
While the PC market is no longer growing at a high pace, demand for client systems appears to be so strong that Intel cannot meet it. One of the reasons for this is that the company outsources production of chiplets for Arrow Lake and Lunar Lake processors to TSMC, and the allocation of wafers that Intel has access to is not enough for the company to meet demand for its products.
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