In a statement, Intel Corp said it was increasing its reliance on contract chip manufacturers in order to ramp up the supply of chips used in personal computers. Intel is struggling with shipment delays midst higher demand.

Supply remained “extremely tight” in the first half of the year, said Intel. This is despite the fact that it has expanded its manufacturing capacity to meet increased demand for PC chips.

“Despite our best efforts, we have not yet resolved this challenge,” said the chipmaker in a letter in which it also apologized to customers and partners for delays.

In October, Intel had said demand in the PC business was outstripping its ability to add capacity and it was weighing options to outsource the demand to outside chip makers.