Intel AMD Warn Customers of 6-Month CPU Delays in China Amid AI-Driven Shortages

Intel and AMD have notified Chinese customers of significant supply constraints for server CPUs, with Intel warning lead times could reach up to six months. Prices for Intel's server CPUs in China are up over 10% due to shortages, per sources, as AI infrastructure investment drives up demand across the supply chain. In China—accounting for over 20% of Intel's revenue—Xeon 4th and 5th generation CPUs are in particularly short supply, with Intel rationing deliveries and substantial backlogs. AMD reports similar constraints, with lead times for some models extending 8–10 weeks. Both companies attributed the shortages to AI adoption driving strong "traditional compute" demand, yield challenges at Intel, and TSMC prioritization of AI chips. Memory shortages have also contributed, with customers accelerating CPU purchases to lock in lower memory prices. The two firms together dominate the server CPU market; Intel's share fell from over 90% in 2019 to about 60% in 2025, while AMD's climbed to over 20%. Clients include Alibaba and Tencent.