With the continuous growth in AI computing demand, CPU prices have been rising steadily since late 2025. This not only reflects current capacity constraints but also demonstrates strong demand for core computing components driven by large-scale AI infrastructure development. However, this wave of price increases has not yet ended; CPUs are expected to see another round of price hikes in the second half of 2026.
According to DigiTimes, supply chain sources recently revealed that Intel plans to continue raising CPU prices, with an approximately 10% increase taking effect on October 5, 2026. Intel also intends to streamline its product lineup, potentially moving some low-margin products to End-Of-Life (EOL) status to improve overall profitability.
These plans stem from strategic adjustments by Intel CEO Lip-Bu Tan, primarily aimed at refocusing on the CPU business. Every aspect, from pricing and gross margins to product mix and manufacturing costs, is being reevaluated. Similar assessments have not yet been conducted for other product lines such as chipsets and network chips. In the past, Intel emphasized platform integrity and tended to prioritize meeting customer needs by retaining a wide range of product models. The situation has now changed, with a sharper focus on contribution to profitability.
Many PC manufacturers still hold inventory acquired at lower costs this year. Next year, the pressure for PC price increases will become more apparent.
Compared to the consumer segment, Intel faces even greater challenges in the server market. Currently, Intel prioritizes its own production capacity for server CPUs, which also offer better gross margins than those manufactured by TSMC. However, server CPUs still cannot meet market demand, likely continuing to squeeze capacity for consumer products. If Intel is determined to capture the server market, it may ultimately allocate consumer orders to TSMC. This presents a dilemma for Core CPUs, which are intended to return to in-house manufacturing, regardless of semiconductor fabrication technology.