Intel, Qualcomm, and AMD Raise Processor Prices
Manufacturers attribute the increase in chip costs to the rising expenses of advanced process technologies and demand for AI computing, reports Commercial Times.
Intel was the first among the three leaders to raise prices for PC processors in September. The largest increase—up to 15–20%—affected high-performance models in the Panther Lake lineup with graphics chips manufactured by TSMC using the N3E process. Meteor Lake and Arrow Lake processors became 5–10% more expensive. Since the end of 2023, Intel has adjusted prices upward three times.
Qualcomm raised prices for Snapdragon X and X2 Elite processors by an average of 10% starting October 1. The company is expanding its presence in the PC and server segments, which requires more complex chips and increases production costs. AMD is also preparing to raise prices for some of its processors, though the exact timing, scale, and product lines have not yet been announced.
The primary reason for the price increases is the rising cost of advanced process technologies. Panther Lake uses a hybrid architecture: the CPU portion is produced by Intel using the 18A process, while high-performance GPU chips are manufactured by TSMC using the N3E process. This increases dependence on contract manufacturers and affects the final cost of the chips. AMD also actively utilizes TSMC’s capacities for its Ryzen and EPYC processors, including the 2-nm process for new generations.
An additional factor is the growing demand for processors for AI computing. The shift toward agent-based workloads in artificial intelligence has increased the market’s need for central processing units. Competition for TSMC’s capacities, particularly for 3-nm and 2-nm processes, also contributes to price growth. Despite transitioning to its own 18A process, Intel continues to use TSMC’s capacities for high-performance GPUs in the Panther Lake lineup.
Experts note that the synchronized price increases reflect broader market trends: rising production costs, increasing chip complexity, and growing demand for computing power. Price pressure is spreading from chip manufacturers to end devices—PCs and servers.