Intel says production of new data center chips set to ramp up in first quarter

Intel Corp said on Monday it would ramp up the production of a new data center chip in the first quarter and that a new generation of chipmaking technology will become a key part of its output this year.

Intel, the biggest maker of central processor chips for both PCs and for the data center servers that power the internet, has struggled with delays in ramping up its current 10-nanometer semiconductor manufacturing process and its next-generation 7-nanometer process. The delays have allowed rivals such as Advanced Micro Devices Inc to gain market share.

Intel also faces an activist investor, Third Point LLC, which is pushing the company to re6evaluate its manufacturing strategy.