CPU Shortage Crisis: Intel and AMD Warn of Extended Lead Times as Data Center Demand Surges
The semiconductor shortage has now critically impacted the CPU market, with Intel and AMD issuing warnings to customers about significant supply chain delays as both manufacturers struggle to meet surging data center demand.
According to industry reports, the situation has reached critical levels with the following key developments:
Market Impact:
• Xeon processor prices in China have increased by an average of 10%
• Lead times for CPU deliveries have extended to up to six months
• Data center demand continues to outpace production capacity
Manufacturer Response:
Intel has already begun reducing chip production for consumer markets in an attempt to prioritize enterprise and data center segments, yet manufacturing capacity remains insufficient to meet demand. AMD has shifted virtually its entire production pipeline to TSMC, which is already operating at near-maximum capacity with minimal availability for desktop PC processor manufacturing.
This supply constraint raises serious concerns about the future availability of consumer-grade processors, particularly for the gaming segment. Industry observers are questioning whether manufacturers may completely discontinue consumer gaming chips in favor of higher-margin data center products.
Sources:
https://www.reuters.com/world/china/intel-amd-notify-customers-china-lengthy-waits-cpus-2026-02-06/
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