# Intel and AMD Lock Chinese Data Centers into Multi-Year CPU Deals Rising CPU prices trigger long-term supply agreements in China. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-23 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/ad573e3a-c75c-4294-a11a-81a4ec29e0be ## Unexpected Surge in CPU Market Server processors were often overlooked during the AI boom. However, supply shortages and price increases in China have changed this. Intel and AMD have signed long-term supply agreements with Chinese data centers. ## China's Unique Situation China has become a particularly tight market due to Washington's export controls. With limited access to Western accelerators, Chinese operators have turned more towards general-purpose server CPUs from Intel and AMD. ## Price Increases and Supply Issues Server CPU prices in China have risen significantly in recent months. Some products have seen monthly increases of over 10%, while certain lines have risen by more than 40% since the start of the year. This reflects broader supply chain issues. ## Long-Term Agreements Chinese customers typically sign one-year supply agreements, but this time, Intel and AMD are discussing deals lasting two years or more. These agreements guarantee purchase volumes rather than fixed prices. ## Broad Impact on Supply Chain The CPU supply crunch is not limited to China. The expansion of AI data centers has increased demand for surrounding components like memory and networking gear, deepening overall supply chain issues. ## Looking Ahead For Intel and AMD, rising demand is an opportunity rather than a problem. However, continued supply shortages highlight the importance of long-term agreements. This situation affects not just AI accelerators but all components needed to run systems. ## Sources covering this story - https://thenextweb.com/news/intel-amd-china-server-cpu-deals — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._