Intel and AMD Face Prolonged CPU Delivery Delays in China Amid AI Boom

Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD) have recently alerted their Chinese customers about extended wait times for server CPUs. Sources with direct knowledge reveal that Intel's delivery times for certain CPU lines have reached up to six months, straining supply chains amid increasing demand.

The surge in artificial intelligence investments has heightened the appetite for not just specialized AI chips but a broad range of computing components. Memory chip prices have shot up, and now standard server CPUs are also in tight supply, creating price hikes averaging over 10% for Intel's server products across China, though specific discounts vary by contract.

Intel's difficulties are most acute with its fourth- and fifth-generation Xeon processors, where shipments are rationed due to backlogs. AMD, meanwhile, has pushed delivery schedules out, with some customers waiting between two and two-and-a-half months. This is the first time such supply issues specific to China have been publicly disclosed.

A November earnings call highlighted Intel's concerns about CPU supply constraints fueled by AI's rapid uptake. The company anticipates the lowest inventory levels in early 2026, but is taking active steps to improve availability by the second quarter. AMD emphasized its expanded capacity based on strong partnerships, particularly with TSMC, though it too faces tight foundry resources prioritized for AI silicon.

Together, Intel and AMD control the bulk of the global server CPU market, though Intel's grip has loosened-dropping from 90% in 2019 to around 60% in 2025, while AMD climbed above 20%. In China, key customers include cloud giants like Alibaba and Tencent, locking horns over limited CPU supplies.

Industrial insiders point to complex causes: Intel grappling with manufacturing yield issues, AMD confronted by TSMC's AI chip priority, and the persistent memory chip shortage impulsing premature CPU orders. The rush for agentic AI workloads, which need more processing power than typical applications, is boosting demand even further.

In an environment where tech hardware demand runs ahead of supply, these CPU delays may pressure timelines for AI deployments and server upgrades. The scenario also underscores the sensitivity of global hardware supply chains to shifting semiconductor production priorities.

For now, the CPU shortage story paints a picture of tightening supply against relentless demand, with prices reflecting the crunch. How quickly these bottlenecks ease remains to be seen, but the CPU waitlist is a reminder that AI's rapid growth is shaking up more than just software.