Intel and AMD Face Severe CPU Shortages
The tech world is grappling with a significant challenge as both Intel and AMD have informed clients of the ongoing supply shortages for their server CPUs. These limitations are becoming increasingly critical, particularly with the surge in AI infrastructure demand.
Intel’s Xeon CPUs: Extended Delays and Price Hikes
Intel, a dominant player in the server CPU market with a 60% share, currently faces severe shortages in its Xeon CPUs. Delivery timelines for its fourth- and fifth-generation server products have been extended by as much as six months. This backlog has pushed some customers to pay over 10% more to secure their orders.
Such consistent delays stem from persistent manufacturing yield challenges, compounded by booming global demand for these chips—particularly from companies investing in AI infrastructure. Intel has responded by rationing supplies, aiming to stabilize demand and supply alignment by Q2 2026.
AMD’s Supply Struggles: Collaboration with TSMC
Meanwhile, AMD is equally feeling the pressure. With 8 to 10-week delivery delays for key server CPU models, AMD is working closely with its manufacturing partner, Taiwan’s TSMC, to ramp up supply. However, TSMC’s prioritization of AI chip production has left limited capacity for AMD’s server CPUs.
Despite these constraints, AMD remains confident in its ability to meet increasing global demand while improving its partnerships and production processes. According to the company, addressing supply chain bottlenecks is its top priority.
Why Memory Constraints Compound the Issue
Adding to the complexity of supply chain issues is the ongoing shortage of memory chips. While demand for these components surges, rising memory prices have prompted customers to accelerate CPU purchases to secure more affordable memory pricing before further hikes.
What’s Next for the Market?
As the adoption of advanced AI technologies continues to grow, server CPU requirements show no sign of slowing down. Both Intel and AMD are actively working to improve manufacturing outputs, address backlog issues, and ensure long-term supply chain stability.
Get Edge Computing Ready with Intel Xeon
For businesses navigating supply challenges, investing in high-performance CPUs like the Intel Xeon line can still position your infrastructure ahead of the curve. Explore their latest advancements and prepare to future-proof your computing systems.
