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CPU shortage more acute than memory; industry awaits Intel 18A yield improvement A global CPU shortage is disrupting PC and industrial-computing supply chains, as processors are out of stock even at premium prices, while memory is limited but purchasable. The scarcity threatens notebook and industrial PC availability worldwide and may persist for some time until Intel's 18A process yields improve, industry sources warn. Industry contacts described the current situation as more acute for processors than for memory, which is available in limited quantities at higher prices. By contrast, several processors are effectively unavailable regardless of price, affecting both Intel and Advanced Micro Devices (AMD). Suppliers said relief may hinge on improvements in Intel's 18A process yields. Both Intel and AMD raised processor prices by 10-15% recently to reflect rising costs. Notebook supply chain representatives, however, reported no immediate expectation of further increases because product availability, rather than price, is the primary constraint. The most scarce parts are Intel's 2022 Raptor Lake series, and one source said lead times have become meaningless because waiting does not guarantee delivery. Analysts foresee Raptor Lake discontinuation in 2026, prompting manufacturers to shift buying toward Arrow Lake and the newer Panther Lake processors. Given Panther Lake's higher cost, the market focus is expected to concentrate on Arrow Lake as the N-1 generation choice. Industrial PC makers serving enterprise clients are particularly affected. While memory shortages can be eased by paying premiums, Intel CPUs are reported as genuinely unavailable. With Intel estimated to hold roughly 90% market share in industrial segments, the impact on IPC makers is pronounced. Intel's supply constraints are expected to ease gradually as 18A yields improve, a point reportedly echoed by Intel CEO Lip-Bu Tan, who said 18A production has started, but yields remain below expectations. Some insiders warned consumer demand may cool in 2026, especially in the second half, as higher prices dampen seasonal sales, prompting vendors to adjust inventories cautiously. Notebook original design manufacturer shipments exceeded expectations in the first quarter due to aggressive brand pull-ins and are expected to be stable in the second quarter, though manufacturers remain conservative about the latter half and foresee annual shipment declines versus 2025. Observers noted that low-end Intel processors have been in short supply since 2025, a situation that once prompted some makers to switch to AMD; shortages are now reported across both vendors. Experts attribute the CPU scarcity to AI-driven demand surges that have strained capacity across GPUs, substrates, memory, passive components, and CPUs, framing the issue as an industry-wide upgrade and transition rather than an isolated corporate strategy. $INTC $AMD

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