Intel Faces Six-Month Delays on Xeon Shipments Amid Severe China Supply Crunch
Feb 24, 2026 (20 hr ago)
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Intel warns Chinese customers of up to six-month delivery delays for critical server CPUs, forcing shipment rationing in a key market.
China Supply Crisis and Rationing of Key Processors
- Intel issued warnings to Chinese customers regarding delivery lead times that could stretch up to six months due to component scarcity4
- The company has been forced to ration shipments of its fourth- and fifth-generation Xeon processors, resulting in a growing backlog of unfilled customer orders4
- These severe supply constraints have already pushed prices for Intel's server products up by more than 10% in many affected Chinese markets4
Financial Exposure in the Region
- The operational issues are significant because China currently contributes more than 20% of Intel's total global revenue4
Emerging Competitive Pressure from Nvidia
- Separately, Nvidia is reportedly aiming to launch its own CPU designed specifically for laptops, which would create a direct competitive challenge for Intel and AMD1
- Nvidia's data center segment is expected to power the majority of its growth, with analysts projecting segment revenue of $60.2 billion for the upcoming quarter2
