By Dhirendra Tripathi — Intel (NASDAQ:INTC) was down by 0.4% in Wednesday’s premarket trading after a company executive said it is delaying production of one of its newest chips to work on improving its performance.

Intel now plans to start producing the next generation of central processing units for servers in the first quarter of 2022, Lisa Spelman, corporate vice president and general manager of the Xeon and Memory Group at Intel, said in a blog post on Tuesday.

The ramp will begin in the second quarter of 2022, she wrote.

“Sapphire Rapids will feature a new microarchitecture designed to address the dynamic and increasingly demanding workloads in future data centers across compute, networking and storage,” Spelman wrote.

The chip giant had earlier said the next-generation Xeon Scalable processor, code-named ‘Sapphire Rapids,’ would be ready late this year.

With demand booming for digital and cloud-based services, the server-chip market has become one of the largest and the fastest-growing in chip-making.

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