PC Makers and Server Firms Turn to China Amid Chip Shortage

Major PC manufacturers including HP, Dell, Acer, and Asus are considering sourcing dynamic random access memory (DRAM) chips from Chinese suppliers to combat a global supply crunch. This shift is driven by the AI boom, which has led leading chipmakers Micron, Samsung, and SK Hynix to prioritize AI customers over consumer electronics. HP and Dell have already begun qualifying products from ChangXin Memory Technologies, intending to use these chips primarily in non-U.S. markets if prices continue to surge through mid-2026.

Simultaneously, Intel Corporation and Advanced Micro Devices, Inc. have notified customers in China of severe supply shortages for server central processing units (CPUs). Intel warned of delivery lead times reaching up to six months for fourth- and fifth-generation Xeon processors, causing prices in China to rise by more than 10%. Advanced Micro Devices reported lead times of eight to 10 weeks. These shortages result from manufacturing yield challenges at Intel, TSMC's prioritization of AI chips over CPUs for Advanced Micro Devices, and a general scarcity of memory chips.

U.S. export controls and bureaucratic vetting have further delayed order fulfillment in China. Consequently, Chinese firms are evaluating domestic alternatives from suppliers such as Huawei's HiSilicon, Hygon Information Technology, and Phytium Technology. Intel expects supply improvements to begin in the second quarter of 2026, while Advanced Micro Devices remains confident in its global supply chain and partnership with TSMC.