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Intel, AMD warn of server CPU shortages in China
06 Feb 2026

Intel and AMD have warned their Chinese customers about a shortage of server central processing units (CPUs).

Intel's delivery delays could extend up to six months, while AMD's delays are between eight to 10 weeks, according to Reuters.

The supply constraints have also resulted in a price hike for Intel's server products in China by over 10%.

AI infrastructure investment surge complicates supply chain
Market impact

The surge in artificial intelligence (AI) infrastructure investment has triggered a mad scramble for not just AI-specific chips, but also other components in the supply chain.

This is most evident in memory chips, whose prices continue to rise.

The latest notices sent to Chinese customers by Intel and AMD indicate that CPU shortages have worsened, potentially complicating things for AI companies and other manufacturers.

Delivery lead times for Intel's Xeon CPUs
Supply chain challenges

In China, which accounts for over 20% of Intel's total revenue, its fourth- and fifth-generation Xeon CPUs are particularly scarce.

The tech giant is rationing deliveries due to a huge backlog of unfulfilled orders. Delivery times for these models could stretch up to six months.

Meanwhile, AMD has also warned clients about supply constraints with some products' delivery lead times pushed out to eight to 10 weeks.

AMD and Intel ramp up supply capabilities to meet demand
Corporate response

Intel, which flagged CPU supply constraints in its January earnings call, attributed the issue to the rapid adoption of AI and strong demand for "traditional compute."

The company hopes to improve supply by Q2 through 2026.

On the other hand, AMD has ramped up its supply capabilities to meet strong demand.

The company expressed confidence in meeting global customer demand based on its strong supplier agreements and supply chain partnerships with TSMC.

Factors contributing to the CPU shortages
Market dynamics

The CPU shortages are due to various reasons:

Intel has struggled to increase production due to ongoing manufacturing yield issues.

Meanwhile, AMD relies on Taiwan's TSMC for production, the world's largest contract foundry, which has prioritized AI chip production over CPUs.

The shortage of memory chips, another critical server component, also contributed to the problem as customers rushed to buy CPUs when memory prices started rising late last year in China.