Intel and AMD Warn of Server CPU Shortages in China, Prices Rise Over 10%
6 February 2026 at 20:10
Intel and AMD have reportedly warned customers in China about tightening server CPU supplies, with delivery times stretching significantly and prices already moving higher. According to Reuters, average prices for Intel server processors in China have increased by more than 10%, depending on contract terms, while delivery times for some Xeon models have extended to as much as six months. The situation appears most severe for Intel's fourth and fifth-generation Xeon processors, where backlogs are reportedly building fast. AMD is facing similar, though less extreme constraints, with some server CPU orders now quoted at eight to ten weeks for delivery. China remains a major market for both companies, accounting for over 20% of Intel's total revenue, and includes customers such as large server OEMs and cloud operators like Alibaba and Tencent. The supply crunch is being driven by a mix of factors, including surging demand tied to AI infrastructure and so-called "agentic AI" systems, which significantly increase CPU requirements alongside GPUs.
Manufacturing limits are also having a negative effect with Intel admitting supply issues linked to manufacturing and yield problems, while AMD relies on TSMC, which now gives priority to high-profit AI chips. Rising memory costs in China have put more pressure on the market, with buyers rushing to buy CPUs to avoid paying more for complete systems later. Both companies say they are working to improve supply. Intel told Reuters its inventory hit a low point in Q1 but expects gradual improvement through 2026, while AMD stated it remains confident in its ability to meet demand based on supplier agreements and its partnership with TSMC. For now, however, customers may still be facing higher prices and longer waits for server CPUs.
Manufacturing limits are also having a negative effect with Intel admitting supply issues linked to manufacturing and yield problems, while AMD relies on TSMC, which now gives priority to high-profit AI chips. Rising memory costs in China have put more pressure on the market, with buyers rushing to buy CPUs to avoid paying more for complete systems later. Both companies say they are working to improve supply. Intel told Reuters its inventory hit a low point in Q1 but expects gradual improvement through 2026, while AMD stated it remains confident in its ability to meet demand based on supplier agreements and its partnership with TSMC. For now, however, customers may still be facing higher prices and longer waits for server CPUs.
