Intel faces chip supply shortage amid Xeon growth
Intel faces semiconductor shortages as demand for data center and desktop processors surges beyond production capacity. Chief Financial Officer David Zinsner told Barron’s that inventory depletion will likely persist through the first quarter of 2026 despite expanded manufacturing efforts. The company’s increased adoption of its Xeon 6 Granite Ridge server chips prompted higher output at older facilities using Intel 7 manufacturing technology.
The chipmaker raised prices on Raptor Lake consumer processors to balance supply between client and server markets. Intel prioritizes data center production over consumer sales as it works to reclaim market position from competitors like AMD. The tight capacity environment forces the company to adjust pricing strategies and shift customer orders toward products with available inventory.
