Is Intel Making Too Many Chips?

editingwhiz writes "IT Manager's Journal business columnist Melanie Hollands is confused about Intel's mid-quarter financial update. The world's leading chipmaker warns that it has a major overage in inventory resulting in a gross margin reduction because its fabrication process is too darn efficient."(The gross margin reduction) is due to better-than-expected manufacturing efficiencies ... which have, in turn, resulted in more chips than needed," the company said. Huh? (ITMJ is part of the OSTG network.)" Actually, it makes sense - if you make too many chips that you don't sell, you increase costs, but without any increase in revenue.