Overview
- Intel is rationing fourth- and fifth-generation Xeon processors in China, with some deliveries now projected to take up to six months due to a substantial backlog.
- AMD told clients that lead times for certain server CPUs have extended to eight to ten weeks and said it has expanded supply capabilities and remains confident in meeting global demand.
- Intel’s server CPU prices in China have risen by more than 10%, though final pricing varies by customer contract.
- Accelerating AI infrastructure buildouts are straining capacity for traditional CPUs, with TSMC prioritizing AI chips for AMD and industry-wide memory shortages prompting customers to pull forward CPU orders.
- China accounts for more than 20% of Intel’s revenue, and affected clients include major server makers and cloud providers such as Alibaba and Tencent.