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[winjer]

Intel could increase the price of its CPUs to help pay for fabs, restructuring (Updated)

Update: Our advice to approach this with a healthy dose of salt turned out to be sound: Intel has confirmed that the rumors are untrue. A company...

www.techspot.com

Rumors that Intel's Core line is set for a price raise come from German outlet PCGamesHardware. A reader contacted two German wholesalers who reportedly confirmed a letter revealing the hike.

According to the letter, all Core processors that are currently on sale or in production will become more expensive. That covers the Alder Lake (12xxx), Raptor Lake (13xxx), and Raptor Lake Refresh CPUs. It also includes the upcoming Meteor Lake processors that will be the first to drop the "i" and use the Core Ultra branding.

According to the letter, the price increases are related to current and future Intel factories that have to be refinanced. It also states that the company is restructuring.

None of this has been confirmed by Intel, so take it all with a healthy dose of salt. However, Intel is building a leading-edge fab mega-site in Magdeburg, Germany at a cost of no less than €17 billion ($18.6 billion). The company is reportedly receiving around 40% of that amount ($7.5 billion) in government subsidies, but increased development costs have seen Intel ask for $11 billion. So, it's possible that the Core price increases could be limited to just Germany, at least for now.

As for the part about restructuring, Intel recently stopped production of its branded NUCs, passing the baton onto Asus, as it looks to focus more on its chip-making business. In April, the same month it sold its server-building business to Taiwanese company Mitac, Chipzilla posted its biggest quarterly loss in the organization's history, with its PC-focused Client Computing Group's revenue down 28% YoY.

It was only in January when Intel implemented the last CPU price hike, an estimated 10% rise on the Alder Lake chips' MSRP. It seems quite soon for another rise, but it sounds like Intel could use the money.

If anyone is planning on buying a new system with an Intel CPU, then you better do it sooner to avoid getting hit with this price increase.

 

[LordCBH]

CPUs are already too damn expensive

 

[Buggy Loop]

So they built factories… to raise up price and lose even more market share to AMD?

 

[TVexperto]

bye intel it was nice knowing you

 

[Silver Wattle]

Intel could increase the price of its CPUs to help pay for fabs, restructuring (Updated)

Update: Our advice to approach this with a healthy dose of salt turned out to be sound: Intel has confirmed that the rumors are untrue. A company...

www.techspot.com

If anyone is planning on buying a new system with an Intel CPU, then you better do it sooner to avoid getting hit with this price increase.

That makes no sense to buy now to maybe avoid a price rise, when you can just buy AMD.
Also the price rise will likely only be for new CPUs not existing ones.

 

[Black_Stride]

Damn and I really wanted a 14500 to replace my 12400.

Guess ill just bite the bullet and get a 200 dollar 12600K while its still on sale and wait to see how good MeteorLake and/or ArrowLake are.

 

[winjer]

That makes no sense to buy now to maybe avoid a price rise, when you can just buy AMD.
Also the price rise will likely only be for new CPUs not existing ones.

That would be the obvious choice. But there are people who only buy Intel CPUs, no matter what.

 

[DaleinCalgary]

the market will decide if this is a good move or not. But building them factories is not cheap.

 

[Puscifer]

CPUs are already too damn expensive

7600X regularly hits 200 dollars just saying

https://www.amazon.com/dp/B0BBJDS62N/?tag=neogaf0e-20

You get Starfield as well, effectively making it 130 bucks

 

[Black_Stride]

That makes no sense to buy now to maybe avoid a price rise, when you can just buy AMD.
Also the price rise will likely only be for new CPUs not existing ones.

Its a price hike on all 12th, 13th and 14th gen CPUs.
Retailers are being told everything in stock and upcoming stock should reflect the new price.

Its likely a regional price hike, so people in the US might not even be affected....people in Europe I fully expect to feel the full force of this price hike

 

[Thick Thighs Save Lives]

Yo, wtf!? Intel is receiving record tax breaks and monetary incentives from both US and EU to set up chip foundries, and now they're pulling this shit??

 

[nightmare-slain]

i can't really say anything when i spent £750 on a 7950X3D but i could've got a 7800X3D for £420 and for gaming that CPU can go up against the 13900K at £550.

if Intel are going to raise the prices then i don't think i'll be going back to them. AMD need to bring prices down on their AM5 boards and I really don't see why anyone should use Intel.

 

[Bojji]

Its a price hike on all 12th, 13th and 14th gen CPUs.
Retailers are being told everything in stock and upcoming stock should reflect the new price.

Its likely a regional price hike, so people in the US might not even be affected....people in Europe I fully expect to feel the full force of this price hike

Europe is always hit by price increases and US is not, why the fuck that happens?

 

[winjer]

the market will decide if this is a good move or not. But building them factories is not cheap.

True, but Intel has been making some very weird decisions.
Last quarter, they posted some of the worst results ever for the company. But then decided to pay out 2.5B to shareholders.
While cutting wages or firing thousands in the company to save costs.
And then asking for increases in subsidies from Germany and the USA to build already planned Fabs.
And now, increasing prices for consumers.

 

[Black_Stride]

i can't really say anything when i spent £750 on a 7950X3D but i could've got a 7800X3D for £420 and for gaming that CPU can go up against the 13900K at £550.

if Intel are going to raise the prices then i don't think i'll be going back to them. AMD need to bring prices down on their AM5 boards and I really don't see why anyone should use Intel.

You are on AM5 even if Intel cut the price of the 14900K to 400 dollars you likely wouldnt jump back to Intel.

Europe is always hit by price increases and US is not, why the fuck that happens?

It is weird, maybe theres some telemetry these companies have that shows the Europe doesnt react too much when price hikes happen, while in the US there is a more drastic change in customer behavior.

This is the same thing that happens in the car industry and even the PS5 got a price hike in Europe.

 

[DaleinCalgary]

True, but Intel has been making some very weird decisions.
Last quarter, they posted some of the worst results ever for the company. But then decided to pay out 2.5B to shareholders.
While cutting wages or firing thousands in the company to save costs.
And then asking for increases in subsidies from Germany and the USA to build already planned Fabs.
And now, increasing prices for consumers.

They are just trying to keep the stock price up if they are paying dividends. Chip companies pretty much have governments by the short hairs as they are trying to move manufacturing out of risky areas in Asia. Prices will increase out of factories like this and what they are building in Arizona. But the risk goes down over China.

 

[Puscifer]

Its a price hike on all 12th, 13th and 14th gen CPUs.
Retailers are being told everything in stock and upcoming stock should reflect the new price.

Its likely a regional price hike, so people in the US might not even be affected....people in Europe I fully expect to feel the full force of this price hike

Any reason why this is? Those guys seemingly get the absolute WORSE of any economic impact.

 

[Spyxos]

Will Intel as we know it today, still exist in 10 years?

 

[winjer]

They are just trying to keep the stock price up if they are paying dividends. Chip companies pretty much have governments by the short hairs as they are trying to move manufacturing out of risky areas in Asia. Prices will increase out of factories like this and what they are building in Arizona. But the risk goes down over China.

I understand that, but then they don't have money to re-invest. And the result is having to fire people, cut wages, beg for more government subsidies, and rise prices.
This is not a healthy situation to be in. And what will Intel do next quarter? Are they going to waste another 2.5B dollars to appease shareholders, and then continue to fire people, rise prices and beg for more subsidies?

 

[The Cockatrice]

I upgraded last year to a 12700K so, see ya in 5+ years or so, fucking scumbags.

 

[Buggy Loop]

Yo, wtf!? Intel is receiving record tax breaks and monetary incentives from both US and EU to set up chip foundries, and now they're pulling this shit??

And since its now THEIR brand new gigantic foundry, sponsored by US government because of fears of a war in Taiwan and being too reliant on TSMC, they're supposed to have lower costs of production., by not relying on external foundries (meteor lake was planned for TSMC before cancellation), and producing MORE.

Maybe they expect AMD to also raise prices of next CPU round?

 

[Senua]

Maybe they expect AMD to also raise prices of next CPU round?

Nah, it's not like AMD to follow competitors absurd price hiking

 

[Buggy Loop]

Nah, it's not like AMD to follow competitors absurd price hiking

We're $20 cheaper on CPU but $70 more on motherboards baseline! What a deal!

 

[Black_Stride]

Will Intel as we know it today, still exist in 10 years?

Absolutely.
If anything I expect them to actually start gaining market share with their new Arc GPUs and ArrowLake/LunarLake.

Their new iGPUs are supposedly good enough for "serious" gaming on low.
The new CPUs in theory will have enough power to designate them APUs.

And since its now THEIR brand new gigantic foundry, sponsored by US government because of fears of a war in Taiwan and being too reliant on TSMC, they're supposed to have lower costs of production., by not relying on external foundries (meteor lake was planned for TSMC before cancellation), and producing MORE.

Maybe they expect AMD to also raise prices of next CPU round?

AMD did raise the prices of pretty much all their CPUs and chipsets for Ryzen 7000.....remember at launch how all X670(E) motherboards were super overpriced and we had to wait for the lower tier cheaper chipsets before Ryzen 7000 really took off.

The only thing is that Intel almost never discounts their CPUs, AMD realized they fucked up on pricing and the 7000 series of CPUs got price cuts pretty much immediately.

I doubt i has to do with AMD, but im guessing Intel believe they can get away with it, cuz alot of video editors absolutely live for quicksync and will give up raw core count of AMD to go with Intels 8 core CPUs.

 

[Buggy Loop]

AMD did raise the prices of pretty much all their CPUs and chipsets for Ryzen 7000.....remember at launch how all X670(E) motherboards were super overpriced and we had to wait for the lower tier cheaper chipsets before Ryzen 7000 really took off.

The only thing is that Intel almost never discounts their CPUs, AMD realized they fucked up on pricing and the 7000 series of CPUs got price cuts pretty much immediately.

I doubt i has to do with AMD, but im guessing Intel believe they can get away with it, cuz alot of video editors absolutely live for quicksync and will give up raw core count of AMD to go with Intels 8 core CPUs.

Or maybe they have a lot of confidence this time around on their CPU performances to be a step beyond. It's hard to tell with Intel nowadays, it's either major CEO fuckup or they have a monster CPU. It's a matter of time that they react to AMD tickling the dragon's tail.

 

[Black_Stride]

Or maybe they have a lot of confidence this time around on their CPU performances to be a step beyond. It's hard to tell with Intel nowadays, it's either major CEO fuckup or they have a monster CPU. It's a matter of time that they react to AMD tickling the dragon's tail.

13th gen most of the CPUs are actually AlderLake again.
14th gen is RaptorLake again.

MeteorLake and ArrowLake are what people are really looking forward to....if ArrowLake is actually 20% better than AlderLake then indeed thats a major increase.

 

[Ev1L AuRoN]

I'll wait for AM5+ the 8xxxx series. I never jump at a first generation CPU with a new memory standard.

Also, I'm hoping AMD bump the core count on the Ryzen 5

 

[sankt-Antonio]

Arent they getting billions upon billions from governments to fund these? 10 billions from Germany for the Magdeburg plant for example.

 

[T4keD0wN]

Man, this Intel is behaving like a company.
They currently have pretty decent prices where i live.

I have switched to alder lake instead of just getting a zen3 cpu while already having an AM4 mobo because it was much cheaper for me at the time. It would be funny if it were cheaper for me to switch to AM5 platform than to stick with lga1700 and just get a raptor lake refresh.