Major CPU manufacturers such as Intel, AMD & MediaTek are boosting their CPU production, but prices continue to rise.
CPU Makers Boost Production, But This Won't Change Current Pricing Trends & Shortages
Agentic AI demand has prompted a CPU shortage that has further led prices to increase. As demand swells, the GPU to CPU ratio has fallen from 8:1 to 4:1, and is on the path to hit 1:1 sooner or later. As processors continue to face supply constraints, multiple chipmakers are now boosting their production capacities.
Supply chain sources indicate that after Intel decided to prioritize its limited production capacity for high-priced Xeon server processors, the market for notebooks and desktop computers (DTs) has opened up significantly. This has led to a substantial increase in the market share of AMD's entire processor lineup. Furthermore, reports suggest that MediaTek, a major Taiwanese IC design company, which has been deeply involved in the Chrombook platform for many years, is expected to see its shipments grow by over 40% for the first time in 2026. MediaTek stated that its 2026 outlook will be outlined at its earnings conference on April 30th.
As per DigiTimes, quoting supply chain sources, the demand for Intel's Xeon CPUs has reached an all-time high, and the company is unable to meet demand. The company has been gaining a lot of traction for its Xeon 6 lineup lately, and even using salvaged dies to drive revenue up. At the same time, competitors like AMD and MediaTek are taking advantage of the situation.
As demand increases, so do prices. Intel CPUs have already seen a 10% bump last year and another 10% bump last month. Further price hikes are expected in the coming quarters. This not only affects Xeon but also mainstream lineups. Making matters worse, AMD has been able to take advantage of the situation & is expected to reach 50% server CPU market share soon.
AMD, NVIDIA & MediaTek Also Intensifying Their CPU Production
AMD's next-gen EPYC Venice CPUs, based on the Zen 6 architecture and made on TSMC's N2 process tech, are rolling out this year, further causing difficulties for Intel in the server segment. NVIDIA is also bringing out its Vera CPU this year as it reduces dependence on external CPUs for its AI platforms.
On the other hand, many mainstream platforms such as Chromebooks have seen lead times increase to 1-year. This is a crucial market for Intel, and as the blue team shifts its attention to server/high-end CPU products, OEMs are looking at alternatives to fulfill their supply. MediaTek is one big name that will be taking advantage of this situation, and is expected to see a 40% bump in processor shipments for Chromebook platforms.
All three manufacturers are also working towards boosting their CPU production capacities in light of recent demand, and while it will definitely help in driving revenue further up, it is unlikely to address the massive demand
About the author: A Software Engineer by training and a PC enthusiast by passion, Hassan Mujtaba serves as Wccftech's Senior Editor for hardware section. With years of experience in the industry, he specializes in deep-dive technical analysis of next-generation CPU and GPU architectures, motherboards, and cooling solutions. His work involves not only breaking news on upcoming technologies but also extensive hands-on reviews and benchmarking.
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