Intel, AMD CPU Shortages Hit China Amid AI Boom

Intel and AMD Report Major CPU Supply Delays in China

Intel and Advanced Micro Devices (AMD) have officially notified customers in China of significant supply shortages for server central processing units (CPUs). The delays are a direct result of booming global investment in artificial intelligence infrastructure, which has strained the entire semiconductor supply chain.

Situation Overview

According to sources, Intel has warned of delivery lead times extending up to six months for its fourth and fifth-generation Xeon CPUs. This situation has led to price increases of over 10% for some of its server products in the Chinese market. AMD has also informed clients of supply constraints, with delivery times for certain products pushed out to eight to ten weeks.

Impact on the Market

The shortages are expected to impact major server manufacturers and cloud providers in China, such as Alibaba and Tencent. These constraints stem from Intel's manufacturing challenges and limited production capacity at TSMC, which manufactures chips for AMD and is currently prioritizing high-demand AI accelerators.

Summary

While both companies are working to increase supply, the ongoing CPU shortage highlights the intense pressure on the hardware supply chain created by the rapid adoption of AI. Intel anticipates supply improvements starting in the second quarter, but the market will likely remain constrained in the near term.

FAQ

Q: Why are there CPU shortages in China?
A: The primary causes are surging AI-driven demand, manufacturing challenges at Intel, and prioritized AI chip production at foundries like TSMC, which limits capacity for traditional CPUs.

Q: How long are the delays for Intel and AMD CPUs?
A: Intel has reported delivery lead times of up to six months for some models, while certain AMD products are delayed by eight to ten weeks.

Source: Reuters via Investing.com