Intel expects severe server-CPU shortages in the first half of 2027

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If you're planning server capacity, Intel expects supply constraints to remain particularly severe in the first half of 2027. The company is shifting some manufacturing capacity from client CPUs toward data-center CPUs to meet AI-related demand.

Here's what is changing:

• Increasing production of Xeon 6 Granite Rapids, built on Intel 3, is an immediate priority.
• Intel plans to redirect Oregon resources intended for Intel 18A Panther Lake client processors to Intel 3. The added capacity is expected to enter production in the second half of 2027.
• Intel expects about 40% more capacity for substrates, the bases used in chip packaging, in the second half of 2027.
• Advanced packaging operations are expanding in New Mexico and Malaysia for internal products and external customers.

One catch: the Fab 24 expansion in Ireland is not expected online until the end of 2027 unless accelerated.

Sources: tomshardware.com