In an exclusive report by Reuters, Intel and AMD have notified Chinese customers of supply shortages for server central processing units, with Intel warning that delivery lead times could stretch to as long as six months, according to people familiar with the matter. The constraints have pushed prices for Intel’s server CPUs in China up by more than 10% on average, though pricing varies by contract.
The shortages reflect broader strain across the technology supply chain as booming investment in artificial intelligence infrastructure drives demand not only for AI accelerators but also for traditional compute and memory components. In China, which accounts for more than 20% of Intel’s revenue, fourth- and fifth-generation Xeon processors are particularly constrained, with Intel rationing shipments and facing a substantial backlog of unfilled orders.
AMD has also informed customers of supply limits, with some products seeing delivery times extended to eight to ten weeks. Intel cited strong demand for traditional compute driven by AI adoption, while AMD said it has expanded supply capacity through partnerships, including with TSMC. The shortages could complicate deployment timelines for cloud providers and manufacturers relying on server CPUs.
