Intel and AMD inform Chinese customers: CPU supply shortage with delivery times up to six months

Tech Sina News, Beijing Time February 6 — According to Reuters, sources say that Intel and AMD have notified Chinese customers of a shortage in server central processing units (CPUs). Intel warns that delivery times for server CPUs could be up to six months.

Sources reveal that the supply tightness has caused prices of Intel server products in China to generally increase by over 10%, though specific prices vary depending on customer contracts.

The rapid growth of AI infrastructure investments has not only sparked a rush for AI-specific chips but also affected other parts of the supply chain. Among these, memory chip shortages are particularly severe, with prices continuing to soar.

Sources say that Intel and AMD have recently notified Chinese customers of supply shortages, indicating that CPU shortages are worsening. This could increase challenges faced by AI companies and many other manufacturers.

Sources also state that China accounts for over 20% of Intel’s global revenue. Currently, supply of its 4th and 5th generation Xeon CPUs is especially tight, and Intel has begun rationing shipments. They add that there is a huge backlog of unfulfilled orders for these models, with delivery times extended up to six months.

AMD has also informed customers of limited supply, with some AMD products experiencing delivery delays of 8 to 10 weeks.

Responses

Intel mentioned the CPU supply tightness during its January earnings call. In a statement sent to Reuters, the company said that the rapid adoption of AI has led to strong demand for “traditional computing.”

“We expect inventory levels to be at their lowest in the first quarter, but we are actively taking measures. From the second quarter through the end of 2026, supply conditions are expected to gradually improve,” Intel stated.

AMD reiterated its position from the earnings call in a statement to Reuters, saying it has increased supply capacity to meet strong demand.

“Based on our robust supplier agreements and supply chain system (including our partnership with TSMC), we are confident in our ability to meet global customer needs,” the company said.

These two companies dominate the global server CPU market. According to a report by UBS released in January, Intel’s market share has fallen from over 90% in 2019 to about 60% in 2025, while AMD’s share has risen from around 5% in 2019 to over 20% last year. In China, their customers include major server manufacturers and cloud service providers such as Alibaba and Tencent.

Multiple Factors

The CPU shortage stems from multiple causes. Intel has struggled with manufacturing yield challenges, making capacity expansion difficult. AMD outsources production to TSMC, which prioritizes AI chip manufacturing, squeezing available CPU capacity.

Additionally, shortages of memory chips, which are also critical server components, have worsened CPU supply issues. According to a third source involved in selling server CPUs and memory products, when memory prices in China began rising at the end of last year, customers accelerated CPU purchases to lock in lower memory prices (bundled sales of both).

Meanwhile, the surge in demand for AI intelligent systems has further increased supply pressure. The processing power required for these advanced applications far exceeds traditional workloads. (Author: Xiao Yu)