Intel and AMD are raising prices for server and desktop processors in two stages. The first increase of approximately 10 percent takes effect in December 2025. The second increase of another 10 percent follows around March 2026. Intel is prioritizing its manufacturing capacity for high-end Xeon server processors. This shift in production priority reflects a strategic realignment of resources toward the data center segment.
The PC assembly market has shifted dramatically from Intel's historical dominance to a balanced landscape. Intel previously held about 90 percent of the PC assembly market share. The market now stands at a 50 to 50 split between AMD and Intel. Intel's Twin Lake CPUs are projected to reach approximately 7.9 million units in shipments for 2026. MediaTek Chromebook CPUs face a different trajectory with supply constraints.
MediaTek expects its Chromebook CPU shipments to grow by over 40 percent year over year in 2026. This growth brings the total volume to approximately 7 million units. Lead times for these components have stretched to a maximum of one year. The extended wait times indicate significant pressure on the supply chain for Chromebook processors. This delay impacts the rollout schedule for new devices in the budget computing segment.
Intel prioritizes server production while AMD and MediaTek gain market share
The price increases apply globally to the affected processor lines. Intel and AMD are executing these hikes to manage production costs and capacity allocation. The exact impact of these price hikes on consumer demand remains unconfirmed. Market analysts note that projections for 2026 are estimates based on current supply chain data. The long-term effects on market share shifts will depend on how quickly competitors adjust their strategies.
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