Intel has dominated the central processing unit (CPU) market, holding over 78% market share, outpacing rivals AMD and Apple, which rank second and third, respectively. This is according to a report by Canalys, a firm specializing in tracking and analyzing the PC market.
Intel built its success in the CPU sector over several years, offering robust processors capable of handling demanding tasks and excelling in various gaming applications. It's fair to say that gamers and those seeking high-performance gaming processors have been key to the American company's success. However, it seems Intel has chosen to neglect this crucial sector, which helped elevate its value beyond $50 billion, particularly with its 13th and 14th generation processors.
Currently, Intel processors are suffering from an ongoing crisis that has lasted for weeks, with no clear solution or even acknowledgment from the company. Gamers have been caught off guard by the sudden overheating of Intel's newer generation processors, which leads to complete failure. Despite this, the company shows no interest in fixing the issue or compensating affected gamers.
The Beginning of Intel’s Processor Crisis
Although Intel's processor crisis has drawn significant attention in recent weeks, it is not a new issue. Its origins trace back to late 2022, specifically mid-December, when users began noticing complete processor failures, albeit less severe than the current situation.
The problem persisted sporadically throughout 2023, even following the announcement and launch of Intel’s 14th generation processors. The issue then intensified, reaching its peak in recent months, coinciding with the release of version 5.4 of the Unreal Engine for game development and its widespread adoption by developers.
Before Intel acknowledged the problem, Unreal Engine officials observed that 50% of users with 13th and 14th generation Core i9 processors experienced sudden engine shutdowns, eventually leading to complete failure. This prompted a significant number of users to switch to AMD processors.
The crisis continued until game development teams, including Alderon Games, the developer of "Path of Titans," took notice. Alderon Games issued an official statement accusing Intel of selling defective processors that negatively impacted both user and developer experiences.
The company’s statement highlighted numerous issues caused by these processors, including the malfunction of all gaming PCs using 13th and 14th generation processors, with failure rates exceeding 100%. Additionally, the game’s servers, developer computers, and testing tools—relying on these processors—faced significant disruptions in recent months. Despite attempts to communicate with Intel for solutions, the development team found no resolution and decided to disable the game on 13th and 14th generation processors to avoid further issues.
Alderon Games’ statement is not the only one concerning defective processors. Several European gaming hardware retailers have reported that return rates for these processors have exceeded four times the usual rate in a short period, further confirming a real problem with these processors, especially since it wasn’t limited to just Core i9 processors.
Absolute Disregard
Intel has chosen to ignore these complaints and challenges entirely. As public outcry against the company grew louder, Intel blamed the issue on high and irregular power consumption by the processors. In an official statement on its website, Intel announced plans to release an update aimed at mitigating the problem.
However, this update targets processors not yet affected by the crisis, indicating that the defective processors will not be repaired, nor will there be a direct solution. The company also has no plans to recall the defective processors or those currently on the market, leaving the responsibility of updates to the users who purchase them.
Intel's approach contrasts sharply with that of its main competitor, AMD, which faced a similar issue with its Ryzen 9000 processors around the same time. Unlike Intel, AMD decided to halt sales of the processors until the issue was resolved before reintroducing them to the market.
The Root Cause of Intel Processors Overheat Problem
Tom's Hardware provided a logical explanation based on tests conducted on Intel’s 13th and 14th generation processors. This analysis pointed to two direct causes of the problem. The first is related to a software update sent by Intel.
This update addressed a bug in the processor’s code that caused it to draw more power than needed, leading to permanent damage to the power circuits. This damage is irreversible and cannot be fixed with software updates or repairs, necessitating the disposal of the processor if it occurs.
The second cause is related to the oxidation process, which is part of manufacturing central processing units. This oxidized layer is supposed to protect the processor's components, but due to a fault in applying this layer, it fails to protect the components and instead contributes to their degradation. It’s worth noting that Intel faced a similar issue with Core i7 processors in 2023 and later resolved it.
Investor Concerns
The crisis has escalated at a time when Intel is not in an enviable position, as it coincides with the upcoming announcement of investor earnings. This development has not been favorable for the company. While Intel has avoided directly announcing its losses, it has revealed a campaign to cut costs by $10 billion to prevent future losses, including significant layoffs.
Intel’s recent response to the crisis may be an attempt to prevent further declines in stock value, which has already been impacted by over 1% since the crisis began. If the company fails to provide logical solutions and satisfactory explanations to investors, it could face widespread shareholder withdrawals, further negatively affecting its value.
So the question remains: Will Intel manage to salvage the situation, or will it continue to ignore the crisis until it spirals out of control?