The global chip shortage is deepening again, this time hitting processors. After months of tight memory supply, companies are now struggling to secure enough central processing units (CPUs), creating a double blow for the tech industry and raising costs across devices, Nikkei Asia reported.
Shortages of CPUs made by Intel and AMD have worsened in recent weeks, adding pressure on PC and server manufacturers already dealing with a severe memory crunch.
Since early 2026, companies such as Tesla and Apple have also flagged that limited supply of dynamic random access memory (Dram) — a key component used in nearly all electronics — is slowing production. Apple CEO Tim Cook said the shortage is likely to reduce profit margins on iPhones, while Micron Technology described the situation as “extremely severe”.
AI demand reshaping chip industry
The ongoing shortage reflects a shift in the semiconductor industry, where AI-related demand is taking priority. Chipmakers are allocating more resources to companies such as Nvidia, Broadcom, Google and Amazon, which are building large-scale AI systems.
PC makers struggle to secure chips
Major PC brands including HP and Dell have started facing a clear mismatch between demand and supply of CPUs since late February, the news report said. The gap has widened quickly, with the situation now significantly worse than just a few months ago.
The shortage is already pushing up costs and extending delivery timelines. CPU prices have increased multiple times this year, with average hikes ranging between 10 per cent and 15 per cent, and some cases exceeding that, the Nikkei Asia report said.
Chipmakers have also informed clients about further price revisions, starting in March.
Delivery times have stretched sharply as well. The news report quoted distributors as saying that in extreme cases, buyers are waiting up to six months for supplies.
Industry executives expect the situation to deteriorate further in the April-June quarter. One gaming PC company executive told Nikkei Asia that supply for consumer PCs is being squeezed as chipmakers prioritise server processors.
Shift towards alternative chip designs
The supply crunch is also starting to reshape competition in the CPU market. Some manufacturers are exploring alternatives based on Arm architecture, which is seen as more power-efficient and increasingly viable for PCs and servers.
Arm architecture is a type of computer processor design created by Arm Ltd. It is known for using less power while delivering good performance. This makes it popular in smartphones, tablets and laptops. Instead of making chips itself, Arm designs the technology that companies like Apple and Qualcomm use in their processors.
The news report quoted an industry supplier as saying that clients such as HP, Dell and Asus are investing more in Arm-based designs due to limited availability of traditional processors.
The report quoted Jose Liao of Asus saying that about 30 per cent of the company’s AI PCs now run on Arm-based processors, compared to 20 per cent last year.
Pressure spreads across tech ecosystem
The crunch is not limited to CPUs and memory chips. Short supply of materials and components — even lesser-known items used in chipmaking — is beginning to affect production plans.
With costs rising across the board, both PC and smartphone brands are preparing to pass on price increases to consumers.
