Intel, Qualcomm Raise CPU Prices Amid AI Demand, Panther Lake Processors See Steepest Hike: Report

Surging manufacturing costs driven by growing AI demand are affecting CPU prices, and major manufacturers have started raising prices. A new report citing supply chain sources claims Intel, Qualcomm, and AMD have hiked rates across processor lineups. Intel has reportedly increased prices of its processor lineups starting last year, while Qualcomm has raised prices for its multi-chip platforms. AMD is said to be considering price adjustments for select processors. Demand for AI PCs and servers and advanced manufacturing process costs are said to be driving up CPU prices.

Intel, Qualcomm CPUs Reportedly Become More Expensive

As per a report by Commercial Times, chipset manufacturers Intel and Qualcomm have increased CPU prices. Intel has increased prices across processor lineups thrice since late last year. The company began adjusting prices for its multi-generation PC processors in September, with high-end Panther Lake processors witnessing an increase of 15 percent to 20 percent. Meteor Lake and Arrow Lake models reportedly rose by 5 percent to 10 percent. Intel's Panther Lake series is not experiencing a simultaneous price increase.

Qualcomm reportedly raised prices for its multi-chip platform, including the Snapdragon X and X2 Elite series, by around 10 percent starting October 1. The adjustment comes amid Qualcomm's expansion into PC and advanced computing segments.

AMD is also said to be considering price adjustments for select processors. AMD's Ryzen and EPYC processor series are based on TSMC's advanced manufacturing technologies. Upcoming EPYC generations are also shifting to more advanced 2nm process nodes, and the rising costs of advanced processes, advanced packaging, and wafers are likely to affect future pricing.

Industry analysts attribute the broader price trend to rising AI computing demand. The report states that wafer foundries are a key factor behind this price surge. AI, mobile, and high-end computing products are competing for TSMC's 3nm capacity, and this has increased unit wafer and packaging costs. Intel is expanding its manufacturing capabilities through its 18A process, but it is using TSMC's advanced nodes for selected components.