Intel and AMD are seeking server central processing unit (CPU) purchase commitments of about one year from Chinese customers, and in some cases two years or longer, according to two people familiar with the talks.

AI data center demand has tightened supply and pushed up prices.

The proposed contracts would lock in purchase volumes rather than prices.

In China, prices for some server CPU products have risen more than 40% since the start of the year.

Lead times for some AMD server CPU products have reportedly lengthened to eight to 10 weeks.

The supply squeeze shows that AI infrastructure requires more than accelerators.

CPUs are also needed for servers, storage, networking, and inference workloads.

TrendForce attributed the crunch to AI demand, foundry constraints, and memory shortages that pulled forward purchases.

Chinese buyers also face separate US restrictions on access to the most advanced AI graphics processing units (GPUs).

🔗 Source: Reuters

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