What caused Intel’s DCG/DPG Q4 2020 sales jump?

SemiAccurate dug in and found the culprit

Intel LogoWhat was behind the Intel sales blowout at DCG/DPG in Q4/2019? SemiAccurate dug in to the matter and found what is behind it, and at least one other player likely involved.

The deal in question, singular, is nothing short of a massive sale. If you take the rule of thumb that CPUs are ~20% of a system’s BoM cost that leaves a lot of others that have a stake in this too. Unfortunately SemiAccurate can only find one of those names but others should be evident in a few weeks when they report their own Q4 numbers.

On a more interesting note, SemiAccurate had heard about this deal over a year ago, it was set to materialize in mid-2019 but it never came to pass. Two quarters later it happened, and happened in a more compressed time frame than was initially indicated by our sources. That is what lead to the big bang in one quarter rather than trickling in at a ‘mere’ few hundred million dollars per quarter for a year or so as we originally though would be the case.

So who was it, and what did they buy? More importantly is this a one time sale or will it happen again?

Note: The following is analysis for professional level subscribers only.

Disclosures: Charlie Demerjian and Stone Arch Networking Services, Inc. have no consulting relationships, investment relationships, or hold any investment positions with any of the companies mentioned in this report.

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Charlie Demerjian

Roving engine of chaos and snide remarks at SemiAccurate
Charlie Demerjian is the founder of Stone Arch Networking Services and SemiAccurate.com. SemiAccurate.com is a technology news site; addressing hardware design, software selection, customization, securing and maintenance, with over one million views per month. He is a technologist and analyst specializing in semiconductors, system and network architecture. As head writer of SemiAccurate.com, he regularly advises writers, analysts, and industry executives on technical matters and long lead industry trends. Charlie is also available through Guidepoint and Mosaic. FullyAccurate