Intel (INTC) is facing strong competition from Advanced Micro Devices (AMD), as the latter has overtaken the former in the process technology node space. The two are close to a price war. Despite the competition, both are seeing strong PC demand as businesses replace their old computers with Windows 10 computers. In the last few months, Intel has increased its 14 nm (nanometer) manufacturing capacity, which started to ease its year-long CPU supply shortage. Its notebook platform volumes rose 15% sequentially in the second quarter.

As we enter the holiday season, the demand for PCs is growing. DigiTimes reported that rising PC demand is creating a CPU supply shortage even after Intel expanded its 14 nm capacity. Let’s see how this supply shortage will impact Intel and the PC supply chain.