Intel reportedly says it boosted yields by selling what would normally be 'scrap' or 'low-expectation' CPUs — customers more willing to accept lesser chips due to overwhelming CPU demand

Intel said unusually strong CPU demand let it sell lower-grade chips that would normally be scrapped, helping boost first-quarter gross margin and profit.

The company is binning more imperfect silicon into lower-tier SKUs instead of treating it as waste, thanks to tight supply and solid processor demand.

The margin lift highlights how AI-driven infrastructure spending and broader CPU demand are improving Intel’s economics, especially in data center chips like Xeon.

Intel’s Q1 results beat expectations, with yield salvage becoming a more meaningful source of revenue rather than scrap.