<p>AI computing power demand continues to surge, triggering a new wave of price hikes in the CPU market.</p>
<p>According to a report by Taiwan's Commercial Times on April 22, ODM (Original Design Manufacturer) industry sources stated that consumer-grade CPU prices have risen 5% to 10% since March, with server CPU prices increasing even more sharply at 10% to 20%. Supply chain sources revealed that major international manufacturers are preparing to launch another round of price hikes in the third quarter.</p>
<p>Two core drivers underpin this price hike cycle: first, rapidly accelerating AI server demand is boosting procurement of key computing components; second, advanced process capacity is highly concentrated, making it difficult for the supply side to respond promptly to demand growth.</p>
<h2>Intel and AMD Take Action; Price Hikes Become Industry Consensus</h2>
<p>Intel moved first. Reports indicate that Intel raised PC CPU prices in March and further increased server CPU prices effective April 1, helping to lift second-quarter gross margins. Market expectations suggest there remains room for another 8% to 10% price increase in the second half of the year.</p>
<p>Regarding AMD, market rumors indicate that its server CPU product line is expected to undergo two price increases—one in the second quarter and another in the third quarter—with a cumulative rise of 16% to 17%.</p>
<p>The sequential actions of these two CPU giants signal that price hikes are no longer isolated incidents but rather the result of industry-wide supply-demand imbalances.</p>
<h2>Capacity Bottlenecks Are the Core Contradiction</h2>
<p>The root cause of CPU price increases lies in capacity constraints, not abnormal fluctuations in demand itself.</p>
<p>As 2nm and 3nm processes enter mass production and expansion phases, AI chips, GPUs, TPUs, and CPUs are competing for limited wafer fabrication capacity on the same production lines. Supply chain sources bluntly stated: &#34;CPU supply remains severely insufficient, and price increases show no signs of ending.&#34;</p>
<p>TSMC's capacity allocation moves are viewed as a critical barometer. Wafer foundry insiders noted that TSMC is continuously expanding its 3nm capacity, primarily driven by simultaneous surges in CPU and AI ASIC demand. Currently, mainstream generations of Intel and AMD CPUs, along with Nvidia's upcoming Vera CPU, all utilize 3nm processes—meaning competition at the same node is extremely fierce.</p>
<h2>Intel Invests $14.2 Billion to Regain Capacity Control</h2>
<p>With external capacity constrained, Intel has chosen to build its own capacity.</p>
<p>Reports indicate that Intel recently announced a $14.2 billion acquisition of a 49% equity stake in Ireland's Fab 34 wafer fab, thereby regaining control over its production capacity. Fab 34 is a key production base for Intel's 4 and Intel 3 process technologies and is currently one of the highest-volume advanced process wafer fabs.</p>
<p>The market interprets this move as Intel proactively building capacity ahead of sustained AI inference-driven CPU demand growth, aiming to reduce reliance on external foundries.</p>
<h2>Supply-Demand Gap May Persist Until 2027</h2>
<p>Analysts from institutional firms believe that the CPU market will remain highly constrained between 2026 and 2027, with capacity—not demand—being the primary limiting factor.</p>
<p>The report notes that as long as AI infrastructure continues to expand and bottlenecks in advanced processes and packaging remain unresolved, the trend of rising CPU prices will persist, benefiting the entire supply chain including wafer fabrication, packaging and testing, and equipment and materials sectors.</p>
<p>For the market, the duration and magnitude of this price hike cycle will largely depend on the pace of capacity expansion by wafer foundries like TSMC and the actual implementation speed of AI computing power investments.</p>

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<p>Industry insiders reveal that consumer-grade CPU prices have risen 5% to 10% since March, while server CPU prices have surged 10% to 20%. Intel has adjusted prices twice, and AMD's server CPUs are expected to see a cumulative price increase of 16% to 17% in the second and third quarters. Supply chain sources describe the situation as 'severe shortage.' Major international manufacturers are now planning another round of price hikes for the third quarter</p>

- The demand for AI computing power is driving a new round of price increases in the CPU market, with consumer CPU prices rising by 5% to 10% and server CPUs by 10% to 20% since March 2026.  
- The price hikes are attributed to surging AI server demand and concentrated advanced manufacturing capacity, with Intel and AMD leading the charge in price adjustments due to supply constraints.  
- Analysts predict that the CPU market will remain tight until 2027, predominantly due to capacity shortages rather than fluctuations in demand.

Severe CPU Shortage to Drive Continued Price Hikes in Q3