AI continues to put pressure on the IT market. After the memory shortage, we’re now seeing agentic AI-related pressures on the processor sector. In this context, we learn that Intel, AMD and Mediatek are striving to increase CPU production capacities. At the same time, demand for processors is soaring, catching up with demand for GPUs, while delivery times are increasing.
Intel, AMD and Mediatek aim to boost CPU production!
CPU demand on the rise!
Demand for CPUs is on the rise, while the GPU/CPU ratio has fallen from 8:1 to 4:1. We’ve learned that this ratio could soon reach 1:1, all on a fairly short timescale. Incidentally, this sudden demand came as a surprise to AMD, which was speaking on the subject.
Of course, the major players in the field are doing what they can to satisfy market demand. We’ve seen this at Intel, which is exploiting more and more dies destined for the scrap heap. On the AMD side, production is entrusted to TSMC, so we can imagine the company getting out its chequebook to secure places with the Taiwanese company.
Unfortunately, Intel currently has limited production capacity and is banking on Xeons. The new Xeon 600s seem to have attracted a lot of attention, but it’s a shame that the company is having trouble satisfying demand. As things stand, AMD is gaining market share, and the forthcoming launch of its Epyc Venice, based on Zen 6, is likely to accelerate the phenomenon. It’s not impossible that we’ll be witnessing parity between blue and red in the coming months.
At the same time, Mediatek is also looking to increase its production capacity. The consumer supply chain is witnessing ever-increasing delivery times, with reports of delivery times of up to 1 year.
Watch out for prices… Yes, again…
Unfortunately, this situation is likely to generate further price hikes, which have become increasingly common in recent months. Already, last week, there was talk of an additional 10% on the price of this component. But if the situation worsens, it’s not impossible that further price rises will occur over the course of the year.
