AI Surge Triggers CPU Shortage, Driving Up PC Costs Worldwide
Rising AI infrastructure demand is squeezing CPU supply, inflating device costs and forcing PC makers to explore alternative chip architectures.
The global semiconductor squeeze is intensifying once again—this time targeting processors and compounding pressure on the technology supply chain. After months of constrained memory availability, companies are now struggling to source enough central processing units (CPUs), creating fresh disruptions for device manufacturers and pushing production costs higher.
Processor shortages involving chips from Intel and AMD have grown more severe in recent weeks. The strain adds to the difficulties already faced by PC and server manufacturers dealing with a prolonged memory supply crunch.
Since early 2026, major firms including Tesla and Apple have warned that limited availability of dynamic random-access memory (DRAM)—a core component in most electronics—is slowing manufacturing lines. Apple CEO Tim Cook said the shortage is likely to reduce profit margins on iPhones, while Micron Technology described the situation as “extremely severe".
AI demand reshaping chip priorities
The renewed supply strain highlights a structural shift underway in the semiconductor industry. Chipmakers are increasingly prioritising production for artificial intelligence infrastructure, diverting capacity toward companies building massive AI computing systems.
Technology giants such as Nvidia, Broadcom, Google, and Amazon are receiving greater allocation as they scale data centres and AI platforms. Meanwhile, demand for general-purpose servers continues to climb sharply, further tightening CPU availability.
PC makers feel the heat
Leading computer brands including HP and Dell have reported widening gaps between processor demand and supply since late February. Industry sources indicate the imbalance has escalated rapidly, with conditions now far more challenging than just a few months ago.
The shortage is translating directly into higher costs and longer wait times. CPU prices have been revised upward several times this year, with average increases ranging between 10 per cent and 15 per cent, and some cases exceeding that, the Nikkei Asia report said.
Chipmakers have also informed clients about further price revisions, starting in March.
Delivery timelines have lengthened considerably. The news report quoted distributors as saying that in extreme cases, buyers are waiting up to six months for supplies.
Industry leaders expect supply pressures to intensify further in the April–June quarter. One gaming PC company executive told Nikkei Asia that supply for consumer PCs is being squeezed as chipmakers prioritise server processors.
Shift towards alternative chip designs
The crunch is also altering competitive dynamics in the processor market. Several manufacturers are accelerating plans to adopt alternatives built on Arm architecture, widely regarded as more power-efficient and increasingly suitable for both personal computers and servers.
Arm architecture is a type of computer processor design created by Arm Ltd.. It is known for using less power while delivering good performance. This makes it popular in smartphones, tablets and laptops. Instead of making chips itself, Arm designs the technology that companies like Apple and Qualcomm use in their processors.
According to industry suppliers, clients such as HP, Dell and Asus are increasing investments in Arm-based systems due to constrained access to traditional processors.
The report quoted Jose Liao of Asus saying that about 30 per cent of the company’s AI PCs now run on Arm-based processors, compared to 20 per cent last year.
Supply stress spreads wider
The disruption is no longer confined to processors and memory. Shortages of raw materials and specialised components—including lesser-known parts essential to chip fabrication—are beginning to disrupt manufacturing schedules.
As production expenses rise across the supply chain, both PC and smartphone brands are preparing to pass on price increases to consumers.
