Overview

• Supply-chain sources told Reuters that Panther Lake chips have defect rates three times higher than industry standards.
• Yields have climbed from about 5% late last year to around 10% this summer, far below the 70% to 80% needed for profitable production.
• CFO David Zinsner insists that yields are improving with margins still not accretive at current rates.
• Intel warns it may have to sell chips at reduced margins or at a loss if yields do not reach profitable thresholds.
• The company could exit leading-edge manufacturing entirely without securing external contracts for its 14A process.