CPU Shortage Looms! Intel and AMD Prices to Rise 10%-15% Starting March, Delivery Cycles Extend Up to 6 Months

The persistent CPU supply shortage from Intel and AMD is adding further pressure to PC and server manufacturers already struggling with a memory chip deficit.

According to Nikkei Asia, Intel and AMD have notified their clients of price increases across their entire CPU lineups, effective March and April, respectively. Multiple sources revealed that CPU quotes have been revised upward several times this year, with average increases ranging from 10% to 15%, and some products seeing even higher hikes. Concurrently, delivery lead times have surged from the previous one to two weeks to an average of eight to twelve weeks, with some cases extending up to six months.

The tight supply situation is accelerating a reshaping of the PC and server market landscape. Industry executives warn that the CPU shortage is expected to worsen in the second quarter (April-June), and supply pressures on the x86 architecture are opening up a larger market window for Arm-based processors.

Supply-Demand Gap Widens Sharply, HP and Dell Bear the Brunt

Nikkei reported that top PC manufacturers like HP and Dell began to observe a significant gap between their CPU demand and actual supply at the end of February, with the current situation being far more severe than months prior.

An executive responsible for selling Nvidia, AMD, and Intel products at a server manufacturer stated, "Previously, the average CPU delivery lead time was about one to two weeks, but it has now extended to an average of eight to twelve weeks." An executive from a server and PC distributor pointed out that in some instances, CPU waiting times currently stretch up to six months.

An executive from a gaming PC company described the dilemma: "If money could solve the problem, that would be great. What we're worried about is that even with more money, we might not be able to get the stock. The CPU shortage is getting worse day by day, no less serious than the situation with memory chips."

Surge in AI Demand is the Root Cause, Normal Server Market Exceeds Expectations

Similar to the logic behind the memory chip shortage, the explosive growth in AI computing power demand is the core driver of this CPU crunch—raw materials and production capacity are being heavily occupied by AI chip giants such as Nvidia, Broadcom, Google, and Amazon.

Brady Wang, an analyst at Counterpoint Research, noted that demand for general-purpose servers and storage servers has far exceeded previous forecasts. "Not every server requires a powerful graphics processor or AI accelerator. With the large-scale deployment of AI data center servers, more general-purpose and storage infrastructure is needed for support, and all of this relies on CPUs."

A server manufacturer executive familiar with the situation added, "The increase in general-purpose servers this year might be close to 15%, but Intel's capacity expansion rate is only in the single digits, leading to a considerable supply-demand imbalance."

Intel and AMD Both Face Production Bottlenecks

Both Intel and AMD are striving to expand production, but their progress is struggling to keep pace with demand.

According to sources, Intel is fully committed to increasing its internal foundry capacity, but it will take time for output to scale up, and it is also facing supply constraints for chip substrates. AMD outsources all its manufacturing to foundries like TSMC and Samsung, forcing it to compete for capacity with AI chip giants like Nvidia and Google.

Intel CEO Lip-Bu Tan indicated to investors in late January that supply constraints are limiting the company's ability to fully capitalize on core market opportunities. AMD CEO Lisa Su stated at an investor conference that the company observes strong growth in server CPU demand and is working to increase supply capabilities.

The supply shortage also shows structural differentiation. Jose Liao, General Manager of ASUS System Business, pointed out that mid-range x86 CPUs face a larger supply gap because Intel and AMD are more focused on high-end chips. "The supply gap is indeed widening and is expected to continue."

Arm Architecture Rises to the Occasion, x86 Dominance Challenged

The CPU shortage is accelerating the market's migration towards Arm architecture. A supplier executive serving ASUS, HP, and Dell stated that their clients are increasing investments in 2026 to design computer products utilizing Arm-based CPUs. "I do see some transitions because the shortage of Intel CPUs is particularly pronounced."

Jose Liao revealed that currently, about 30% of ASUS Copilot AI PCs are equipped with Arm-based CPUs, a significant increase from approximately 20% at the end of last year, and this proportion is expected to continue climbing throughout the year.

For context, both Intel and AMD use the x86 architecture to design CPUs. This architecture accounted for over 85% of PC processors and about 78% of server processors in 2025. This week, Arm announced the launch of its own server CPU products to seize opportunities in the AI wave, marking a formal transition from its long-standing role as a neutral third-party software infrastructure provider. This move could further intensify competitive pressure on the x86 camp.