Allegedly, Intel Plans CPU Price Increase to Generate Revenue for Fab Development and Corporate Restructuring.
The information originates from the reputable German outlet PCGamesHardware, where the forum moderator “Pockerclock” revealed the details. According to the source, two German suppliers were contacted, and they confirmed the existence of a letter from Intel outlining the price hike. Despite its unexpected nature, Intel’s decision might be subject to regional limitations, which we will delve into later in this post.
As per the letter provided by Intel to retailers, the price hike will be applicable to all existing CPUs currently in stock or offered at discounted prices. This includes the Alder Lake, Raptor Lake, and the upcoming Raptor Lake Refresh CPUs. Furthermore, the price increase will also extend to future Meteor Lake SKUs, which will fall under the “Core Ultra” branding.
Intel has a history of raising the prices of its CPU lineup, as it did last year for all chips and components. During that period, the price hikes varied, spanning from single-digit increases to as much as 20%.
Intel has not provided specific details regarding the magnitude of the upcoming price increase, nor have they officially disclosed the reason behind it. However, according to PCGamesHardware, the price hike could potentially be linked to Intel’s ongoing construction of semiconductor facilities worldwide, particularly in Eastern Germany.
As mentioned earlier, we previously reported that Intel is in the process of constructing a €17 billion chip plant in Magdeburg, Eastern Germany. However, the development has encountered obstacles, with the main hindrance being a lack of financing. Local governments have declined to provide additional subsidies for the plant, leading to significant delays. While Intel’s fabrication units are eligible for €6.8 billion in government subsidies, the company is requesting €10 billion due to rising energy and construction expenses.
Considering these challenges, the price hike across Intel CPU products might be a contributing factor, suggesting that the decision could currently be restricted to the German markets.
Intel has begun implementing its company restructure, evident from the discontinuation of the NUC lineup as a primary example. The effects of the price hike are expected to manifest soon, with current retail units likely to see an immediate price increase. Although Intel has not officially confirmed the decision, this news is from a reliable source.
According to the letter, the price hike is not expected to impact Intel’s existing and upcoming GPU releases. While there is speculation that the price increase may be limited to the German markets, this has not been verified yet, so it’s best to approach this information with caution.
As further developments arise, we will keep our readers updated on the situation.
Source: wccftech.com
