{
    "success": true,
    "data": {
        "id": 1705869,
        "msgid": "intel-turns-scrap-chips-into-new-revenue-source-1777366325",
        "date": "2026-04-28 15:05:00",
        "title": "Intel Turns \"Scrap\" Chips into New Revenue Source",
        "author": "Wahyunanda Kusuma Pertiwi",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Business",
        "summary": "Intel is boosting its revenue by repackaging and selling previously discarded \"scrap\" chips, which were deemed defective during production, amid surging demand for AI computing power. These lower-quality chips, typically from the edges of silicon wafers, are now being sorted and marketed with reduced specifications to meet the tight supply of processors for data centres and AI applications. This innovative approach highlights the intense market pressure for computing resources and provides Intel with an unexpected additional profit stream from what was once waste.",
        "content": "<p>Intel has found an unusual way to boost its revenue amid the surge in\ndemand for artificial intelligence (AI). The US-based chip company is\nnow reselling chips that were previously considered \u201cscrap\u201d or unfit for\nuse, transforming them into a new source of profit. This information was\nrevealed by analyst Ben Bajarin from the market research firm Creative\nStrategies. Through his personal X account (formerly Twitter), he stated\nthat he received this explanation from Intel\u2019s investor relations\ndivision. According to Ben, the \u201cscrap\u201d chips in question are Intel dies\nthat were previously regarded as production defects and not used as\nfinished products for consumers. Generally, chips located in the centre\nof the wafer have the best quality and are used for main products.\nMeanwhile, chips on the edges of the wafer are more prone to minor\ndefects due to the manufacturing process. As a result, edge chips are\nusually considered unfit for premium products. In some cases, these\nchips have their specifications downgraded for lower-end products or are\nnot used at all. The situation has changed with the increasing demand\nfor processors (CPUs) due to the AI trend. The skyrocketing computing\nneeds mean that almost all chips, including those previously unused, now\nhave value. Intel has then \u201cturned its mind\u201d and begun repackaging these\npreviously worthless chips through a quality-based sorting process known\nas chip binning. Through this process, lower-quality chips can still be\ndesigned as finished products, albeit with downgraded specifications.\nThese chips are then sold to meet AI computing needs. This demonstrates\nthat the current CPU supply is quite tight, as customers are willing to\nuse lower-quality chips to fulfil their AI computing requirements. This\ncondition also becomes an additional source of revenue for Intel. As a\nCPU manufacturer, particularly in the server line like Intel Xeon,\nIntel\u2019s products are widely used in data centres and global AI\ncompanies, and Intel appears to have profited significantly from this\nbusiness. The repackaged \u201cscrap\u201d chips now seem to provide additional\nmargins and a new profit field, which was previously not included in the\ncompany\u2019s revenue potential.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/intel-turns-scrap-chips-into-new-revenue-source-1777366325",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}