BEIJING, Feb 6 (GeokHub) - Intel and AMD have alerted Chinese clients to significant delays in the supply of server central processing units (CPUs), highlighting growing strain in the technology supply chain. Intel reported delivery times stretching up to six months for some of its Xeon CPUs, while AMD has indicated lead times of up to 10 weeks for certain products.
The shortages come as demand for AI infrastructure surges across China, creating pressure not only on specialized AI chips but also on traditional computing components. Prices for Intel server CPUs in China have reportedly increased by more than 10%, depending on individual contracts.
China accounts for over 20% of Intel’s global revenue, making the region a critical market. In particular, fourth- and fifth-generation Xeon processors are in short supply, prompting Intel to ration deliveries to key clients. AMD’s production, outsourced to Taiwan’s TSMC, has similarly been affected as the foundry prioritizes AI-specific chips.
The supply crunch is further compounded by rising memory chip prices, which have led companies to accelerate CPU purchases to secure overall server components. Advanced AI applications, especially agentic AI systems that handle complex multi-step operations, are placing additional demands on CPU processing power beyond standard workloads.
Both Intel and AMD have emphasized that they are working to improve supply. Intel expects conditions to stabilize in the second quarter of 2026, while AMD maintains confidence in its global supply chain, supported by strategic partnerships with TSMC.
Analysis / Impact:
The CPU shortages underscore the widening impact of AI on global technology supply chains. Companies in China, from cloud providers to server manufacturers, face delays that could slow AI deployment and broader computing projects. Experts suggest that resolving the bottleneck will require both expanded production capacity and careful allocation of high-demand components.
