Allegedly, Intel is planning to raise the prices of its existing CPU lineup in order to generate more revenue for fab development and undertake a comprehensive company restructuring. According to PCGamesHardware, a well-known German outlet, the information was disclosed by the forum’s moderator “Pockerclock.” The source contacted two German suppliers who confirmed receiving a letter from Intel about the price increase. Intel’s decision came as a surprise, and it might have regional limitations, which we’ll explore further in this post.
The letter from Intel informs retailers that the price increase will apply to all CPUs currently in stock or offered at a discounted rate, including Alder Lake, Raptor Lake, and the upcoming Raptor Lake Refresh CPUs. Additionally, future Meteor Lake SKUs falling under the “Core Ultra” branding will also be affected by the price increase.
This marks the second time Intel has raised the prices of its CPU lineup, following a similar move last year, where they increased prices for all chips and components. The price hikes varied, ranging from single-digit percentages up to 20%.
Intel has not officially clarified the magnitude of the upcoming price increase nor provided any official reason for it. However, PCGamesHardware suggests that this move might be linked to Intel’s ongoing construction of semiconductor facilities worldwide, particularly in Eastern Germany.
Intel is presently working on a €17 billion chip plant in Magdeburg, Eastern Germany, but it has encountered obstacles, primarily the lack of financing. Local governments have refused to provide further subsidies for the plant, causing significant delays in its development. While Intel’s fabrication units qualify for €6.8 billion in government subsidies, the company is requesting €10 billion due to rising energy and construction expenses. The potential driving cause for the price hike in Intel CPU products could be connected to these challenges, suggesting that the decision might be limited to German markets, at least for now.
Intel has begun implementing its company restructuring plan, as evidenced by the discontinuation of the NUC lineup. The impact of the price hike may become apparent soon, as current retail units are expected to see an immediate price increase. However, it’s worth noting that the decision will not affect Intel’s current and upcoming GPU releases, as stated in the letter.