Intel CEO Tan sees memory shortage persisting to 2028, CPU demand outpacing supply

September 16, 2026 at 12:21 PM2 min

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Intel CEO Lip-Bu Tan said the company cannot meet more than half of current demand for its processors and expects memory shortages to persist until at least 2028. Memory prices have already risen five to seven times, and many companies are delaying projects due to lack of chips. Intel plans to raise PC processor prices by an average of 10% on October 5, its third increase since late last year.

Key Facts

Intel CEO Lip-Bu Tan said the company cannot meet more than 50% of current demand for its processors.
Memory prices have risen five to seven times, and Tan does not expect availability to improve before 2028.
Intel will raise prices on PC processors by an average of 10% on October 5, its third increase since late last year.
Only four companies supply substrates for Intel's advanced packaging, two in Taiwan and two in Japan.
Intel plans to start production on its 14A process node in the first quarter of 2027.

Memory Shortage

Tan warned of a memory shortage in early 2025, and the shortage has now fully materialized. Many companies are delaying projects because they cannot obtain memory chips in the required quantities. Memory prices have already increased five to seven times. Tan does not expect memory availability to improve before 2028.

CPU Demand and Pricing

The shift toward AI inference is creating favorable conditions for demand for Intel CPUs, which remain in short supply. CPUs are also in demand for managing GPUs, applications, and general-purpose computing. Intel will raise PC processor prices by an average of 10% on October 5. This is the third price increase since late last year; previous increases occurred in the first quarter and in July, with server chip increases reaching $1,000 or more.

Packaging and Process Nodes

Intel sees advanced packaging services as a key growth area but faces shortages of consumables and components such as substrates. Only four companies supply substrates, two in Taiwan and two in Japan, and Intel is making advance payments to secure priority. Japanese suppliers currently achieve about 45% yield for EMIB substrates, with plans to raise it to 55% by January. Intel will begin production on its 14A process node in the first quarter of 2027. Yield on the 18A process node is improving by 7% annually.