Intel and AMD strike long-term CPU deals in China

Intel and AMD are negotiating long-term supply agreements with Chinese data center operators for server processors as prices surge and demand continues to outpace supply, according to industry sources. The agreements, which typically lock in purchase volumes for about a year while leaving pricing flexible, signal a significant shift in a market segment that was once considered stable and readily available.

The reported negotiations highlight how the artificial intelligence boom is reshaping demand for foundational data center hardware beyond specialized graphics accelerators. Modern AI infrastructure requires substantial quantities of central processing units to manage servers, storage, networking, and inference workloads. This broadened demand has created supply pressures, particularly in China, where aggressive investment in data center capacity, AI compute clusters, and national computing projects is underway.

Prices for some server CPU products in China have climbed more than 40% since the start of 2026, according to the sources. Sequential monthly price increases have exceeded 10% for certain models. Earlier this year, Intel reportedly warned Chinese customers of lead times...