Intel will reportedly increase the pricing of its current CPU lineup to squeeze out revenue for fab development and restructure the company as a whole.
Intel's Price Bump Could Have Regional Limits, All "Core" CPUs Will Have an Effect
The news comes from the renowned German outlet PCGamesHardware, where the forum's moderator "Pockerclock" disclosed the information. The source contacted two German suppliers who verified a letter from Intel, which mentioned the price hike. Intel's decision was indeed unexpected, although it could have regional limitations, which we will discuss later in this post.
The letter details that Intel has stated to retailers that all CPUs which are currently in stock or at a discounted price will receive the price increase. This includes the Alder Lake, Raptor Lake, and the upcoming Raptor Lake Refresh CPUs. Moreover, the price increase will also transition to the future Meteor Lake SKUs which will come under the "Core Ultra" branding.
This isn't the first time that Intel will be hiking the price of its CPU lineup as the company did the same last year for all chips and components. The price hikes ranged anywhere from single-digit and up to 20%.
Intel hasn't clarified the extent of this price increase, nor has disclosed any reason officially. However, PCGamesHardware does note that this could be related to Intel's construction of semiconductor facilities globally, especially in Eastern Germany.
We previously reported that Intel is currently developing a €17 billion chip plant in Magdeburg, Eastern Germany however, it is met with hindrances with the primary one being lack of financing. Local governments have denied any additional subsidies for the plant, due to which development has been severely hindered. Intel's fabrication units are eligible for €6.8 billion in government subsidies, but the corporation is asking for €10 billion due to increased energy and construction costs. The price hike across Intel CPU products could be a driving cause which is why it can be said that the decision, for now, could be limited to German markets.
Intel's decision for a company restructure has now started to be implemented with the primary example being the discontinuation of the NUC lineup. The effects of the price hike could be seen very soon since current retailing units are expected to get a price bump immediately. The letter also notes that the decision won't affect Intel's current and future GPU releases.
Intel itself hasn't confirmed the decision through official channels but we believe this news is very reputable. We have analyzed that the price hike could be only for German markets, but this isn't verified so take this with a grain of salt. We will update our readers as soon as we receive further developments.