Why make PC CPUs when there's no memory? Intel shifts production to server chips

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Intel is shifting manufacturing capacity from consumer processors to server CPUs as AI-driven demand outpaces supply, creating what CEO Lip-Bu Tan calls “one of the most significant supply shortages in history.” The company is prioritizing Xeon 6 production and expanding fab and packaging capacity, but expects shortages to stay severe in the first half of 2027, with relief in the second half.