Intel Chip Yields Improve as Supply Expected to Recover by Q2
Intel says its semiconductor manufacturing yields are improving steadily, rising by 7–8 percent every month, signaling progress after prolonged supply constraints. While these gains are significant, they come off a relatively low baseline. Reports from mid-2025 indicated that only around 10 percent of chips produced on Intel’s 18A manufacturing lines initially met internal quality requirements.
Despite the slow start, Intel expects production capacity to ramp up enough in the coming months to ease chip shortages across consumer and enterprise markets.
Intel Expects Supply Recovery Starting in Q2
Intel Chief Financial Officer David Zinsner expressed confidence that the worst of the supply crunch is nearing its end.
“I do believe that the first quarter is the trough,” Zinsner said. “We will improve supply in the second quarter.”
This timeline suggests that Intel’s chip availability could begin stabilizing globally by mid-2026, benefiting PC manufacturers, data centers, and enterprise customers worldwide.
Intel Is Selling Every Chip It Can Produce
Intel executives have repeatedly emphasized that demand currently exceeds supply, and the company is selling nearly every chip it manufactures.
During Intel’s Q4 2025 earnings call, CEO Lip-Bu Tan acknowledged that supply limitations constrained revenue growth:
“We delivered our Q4 2025 results despite supply constraints, which meaningfully limited our ability to capture all of the strengths in our underwriting markets.”
Intel says it is aggressively expanding production to better support customers across North America, Europe, and Asia.
High Demand for Intel Lunar Lake, Arrow Lake, and Granite Rapids
According to Intel investor relations VP John Pitzer, the company would sell more chips immediately if supply allowed, including:
Lunar Lake Core Ultra Series 2 processors
Arrow Lake Core Ultra Series 2 consumer CPUs
Granite Rapids data center processors
These chips are in high demand across consumer electronics, cloud computing, and enterprise data centers, particularly in key global markets.
Intel Advances 18A and 14A Manufacturing Nodes
Beyond short-term supply improvements, Intel continues to push forward with next-generation manufacturing technologies.
Multiple versions of the 18A process remain in active development
Intel’s upcoming 14A process is progressing as planned
Intel is also engaging with potential external foundry customers interested in manufacturing their own chips using Intel’s 14A technology. The company expects clarity on third-party commitments:
Starting in the second half of 2026
Extending into the first half of 2027
Based on customer interest, Intel plans to expand manufacturing capacity globally to support external demand.
Nova Lake Chips Expected by Late 2026
On the product roadmap side, Intel confirmed that its next-generation Nova Lake processors are expected to be ready by the end of 2026.
While detailed specifications remain undisclosed, Nova Lake is expected to:
Serve both desktop and laptop platforms
Succeed current architectures across Intel’s consumer lineup
Use the 18A manufacturing process for at least part of the chip
In contrast, Panther Lake processors will focus primarily on laptop devices.
A Turning Point for Intel’s Global Chip Strategy
Intel’s improving yields, strong demand, and aggressive investment in advanced manufacturing nodes suggest the company is positioning itself for a manufacturing and product turnaround. If supply ramps up as projected in Q2, Intel could strengthen its competitive position in the global semiconductor market while laying the groundwork for long-term foundry expansion.