Intel shifts production capacity from consumer to server CPUs in face of 'unprecedented' AI demand — company navigating 'one of the most significant supply shortages in history'

Although the consumer PC market is shrinking and will continue to decline in coming quarters, Intel remains confident that surging AI industry demand will offset these losses. The company is strategically shifting resources to prioritize server and data center processors.

Global Expansion

Intel is expanding its Fab 24 facility in Ireland to increase Xeon production, has begun equipment installation at Fab 62 in Arizona ahead of schedule, and vows to manufacture 18A chips there. Additionally, the company is boosting advanced packaging capacity in New Mexico and Malaysia.