Intel is moving some manufacturing capacity away from consumer chips to keep up with demand for its Xeon server processors. During its Q3 2026 earnings call, the company said it will convert some Intel 18A resources at its Oregon facilities to Intel 3, the node behind Xeon 6 "Granite Rapids." According to CFO Dave Zinsner, those 18A wafers "are generally going to build Panther Lake products." Zinsner also indicated that weaker PC demand gives Intel room to make the switch, as the company expects the PC slowdown to last at least through the first half of next year. CEO Lip-Bu Tan said the added Intel 3 capacity should be in production in the second half of 2027.

Intel CEO Lip-Bu TanThe industry continues to navigate one of the most significant supply shortages in the history, driven by the unprecedented demand for Super Intelligence. Against this backdrop, I am pleased by the progress we made growing our server supply in Q3. I'm mindful about the ongoing challenges we face in the future quarters to keep pace with the server demand.

Samsung Electronics today reported financial results for the third quarter ended Sept. 30, 2026. The Company posted KRW 195.3 trillion in consolidated revenue, another all-time quarterly high, representing a quarter-on-quarter (QoQ) increase of 14%. Operating profit reached KRW 107.4 trillion, making Samsung Electronics the world's first tech company to exceed KRW 100 trillion in quarterly operating profit.

The Device Solutions (DS) Division posted a QoQ sales increase of 15%, with the Memory Business setting an all-time high for quarterly revenue and operating profit, as semiconductor demand is set to remain robust. The Device eXperience (DX) Division posted a QoQ revenue increase of 8% and recorded an operating loss of KRW 0.8 trillion.

NVIDIA today announced plans with a group of supply chain partners to expand global manufacturing capacity to meet growing demand for its accelerated computing and full-stack AI factory platform.

Working with Amkor Technology, IBIDEN, King Yuan Electronics (KYEC), Samsung Electro-Mechanics, Siliconware Precision Industries (SPIL) and Unimicron Technology Corporation, NVIDIA is enabling new and existing suppliers to expand critical manufacturing capabilities across substrates, advanced packaging, testing and optical engines, strengthening the resiliency and redundancy of NVIDIA's global supply chain.

TrendForce's latest notebook industry research reveals that the primary risk facing the market in 2027 is expected to shift from supply constraints to the impact of rising costs on demand. Global notebook shipments are currently projected to decline by a low-single-digit percentage in 2027. However, if DRAM and CPU prices remain elevated, brands may be forced to pass more of these costs on to consumers. These higher retail prices could further extend replacement cycles, potentially pushing the full-year shipment decline into the high-single-digit range.

In 2026, improved CPU availability, early procurement by brands, and the pull-forward of some replacement demand helped support notebook shipments. However, this does not indicate a meaningful recovery in end-market demand. With some purchases originally expected in the second half of 2026 and beyond already brought forward, replacement momentum in subsequent periods is likely to weaken. Furthermore, as lower-cost inventories are gradually depleted, brands will face more direct pressure from rising CPU, DRAM, and SSD prices.

Samsung is reportedly increasing its orders for materials to boost high-bandwidth memory (HBM) production, with plans to double the production capacity of its current HBM4 and HBM4E manufacturing by 2027. According to SE Daily, the manufacturing capacity for HBM4 and HBM4E is expected to grow from around 20,000 wafers per month in 2026 to 50,000 wafers per month in 2027. This data is derived from the use of glass carriers, which are temporary glass panels placed over thin DRAM wafers to prevent warping or breaking as they are prepared for packaging. Since HBM involves stacking many thin DRAM modules, glass carriers stabilize these wafers until the packaging process begins and the glass is removed. As the unit is one glass carrier per wafer, this provides an estimate of how many HBM4 and HBM4E wafers are produced each month.

Additionally, Samsung's overall HBM production, which includes older generations like HBM3 and HBM3E, currently averages around 180,000 wafers this year and is expected to grow to about 250,000 HBM wafers next year, with 80% dedicated to HBM4 and HBM4E. Samsung began mass production of HBM4 on its sixth-generation 10 nm-class 1c node in February, with HBM4E customer samples available by mid-2026. Future production increases will focus on HBM4 and HBM4E, as customers seek higher densities and bandwidth for their AI accelerators.

TrendForce's latest findings on the memory industry reveal that sharp rises in traditional DRAM contract prices have led to a 59.5% QoQ increase in total DRAM industry revenue, reaching nearly US$154.73 billion in 2Q26.

Growing demand for AI servers, fueled by expanding LLM training and AI inference, has driven higher shipments of HBM3e, LPDDR5X, and high-capacity RDIMMS. The surge in agentic AI applications is further boosting RDIMM demand across various capacities.

According to Reuters, Samsung Foundry is experiencing a significant increase in customer orders, prompting the company to adjust its pricing strategy across multiple nodes. In July, Samsung raised the price of its 4 nm node, known as SF4, by about 10-15% for customers in the United States and China, while customers in Taiwan saw a more modest increase of 5-10%. Prices for wafers produced with the 5 nm node, referred to as SF5, also rose by 10-15%. Interestingly, even the older 8 nm node experienced a 10% price hike. This increase for the SF8 node is likely due to NVIDIA placing orders for its GeForce RTX 3060, a product the company has reintroduced after several generations.

There is no mention of price hikes for newer nodes such as Samsung SF2, SF3, and their variations. It seems Samsung anticipated the level of external customer demand for these nodes, and they are already quite costly. Notably, Reuters reports that U.S.-based customers are prioritized after Samsung's internal chip demand for its own SoCs, while China-based design houses are third in line. However, as China seeks advanced nodes, they are willing to accept higher price increases to secure allocation at Samsung Foundry at any cost.

CXMT, the world's fourth-largest DRAM maker, is now reportedly charging more for its 64 GB DDR5 server RDIMM modules than Samsung, which is already asking $1,240 per unit. The numbers come from Reuters and flip the script on what most people assumed about CXMT, that it would undercut Samsung, SK Hynix, and Micron on price. As we reported previously, CXMT's edge was never really about price. It was about supply availability at a time when demand was consuming everything that Samsung, SK Hynix, and Micron could provide. That demand has since surged roughly tenfold, and CXMT is now under the same pricing pressure as everyone else. The situation was so serious that, reportedly, this year, some Chinese electronics firms filed complaints with China's Ministry of Industry and Information Technology. The companies complained over price hikes from both CXMT and YMTC, claiming the increases were delaying product launches.

CXMT is also building two new plants in Shanghai and Hefei, and is involved with ongoing talks about a third fab. When those two fabs start production, CXMT's monthly wafer output will pass 600,000. That is more than doubling current capacity and the Chinese company could match Micron this year and possibly overtake it by 2030 if plans stay on track. Financially, CXMT reported Q1 2026 revenue of about RMB 50.8 billion (~$7.5B), up 719% year over year, with net profit rising over 1,200%. The company is forecasting first-half 2026 revenue of RMB 110-120 billion ($16-$17.7 billion), representing growth of over 600% compared to the same period last year. A historic IPO is also in the works alongside the fab expansion push. CXMT currently holds around 8-10% of the global DRAM market, behind Micron at 24%, SK Hynix at 29%, and Samsung at 36%.

It's long been predicted that the launch of GTA VI would have an outsized effect on the gaming industry, with the list of game developers moving launch dates to avoid coinciding with the massive launch seemingly growing daily. Strauss Zelnick, the CEO of Take-Two Interactive, and Corsair previously commented that GTA VI would boost console and PC sales when the game launched on the respective platforms. Now, according to a report by The Game Business, this sentiment is being echoed by retailers in the gaming industry. Although the news outlet does not mention the retailer by name for the sake of protecting the source, it reports that a senior games buyer commented that "We've been informed that because of the ongoing issues around hardware component availability, we won't be getting the units we want ahead of GTA. Demand will likely outstrip supply during the year-end period."

The crux of the issue seems to come down to the same ongoing component supply chain and pricing issues that recently resulted in a substantial price increase for both Xbox and PS5 consoles—the Xbox price increase is slated to go into effect three months before GTA VI launches. Console makers offer mixed reports, with Sony's CEO Hiroki Totoki telling investors in May that supply for the 2026 calendar year had already been secured. However, Xbox has been more transparent about the fact that demand for Xbox consoles "definitively" exceeds supply, despite the fact that production and logistics are at capacity making and distributing the consoles. GTA VI has already been listed for pre-order at a starting price of $79.99, and it seems as though Take-Two will stick to the announced November 19 launch date despite a number of prior launch delays.

PC motherboard sales are on track for some of the biggest corrections in recent times as manufacturers struggle with weak demand, according to a DigiTimes report. What began as AI data center expansion quickly started affecting consumer PC DIY endeavors, as severe silicon shortages across the industry drove DRAM and CPU demand so high that prices have increased significantly for DDR4 and DDR5 memory kits, while regular CPUs have also seen a large price increase. In response, PC motherboard makers are caught in the middle of this shortage, seeing their motherboard unit sales revised down significantly. The report notes that all Taiwanese motherboard makers have significantly lowered their 2026 shipment targets, with some experiencing more than a 25% decrease in projected unit sales.

Interestingly, it's not only CPU and memory shortages driving this lowered demand; there are indications that consumers have slowed down their NVIDIA GPU upgrade cycles, which is impacting new motherboard sales. Particularly with the "Blackwell" GPU generation, consumers began purchasing PCIe 5.0 motherboards to achieve the greatest performance increase. However, as these GPUs became rarer and more expensive due to the global DRAM shortage, consumers have become reluctant to upgrade. ASUS is projected to sell about 10 million motherboards in 2026, while MSI and GIGABYTE are now projecting sales of less than 10 million units each. This represents about a 25% yearly decrease from 2025 sales. The worst position is estimated for ASRock, which is expected to see a 30% decrease according to the report.

The global tablet market remained flat in Q1 2026, with shipments rising just 0.1% year on year to reach 37 million units, according to the latest research from Omdia. While tablet shipments declined sequentially, in line with typical seasonal patterns, regional performance was led by Latin America, followed by the Middle East and Africa. However, this growth was largely driven by inventory build-up rather than underlying end-user demand, pointing to a weaker demand outlook.

"Heading into 2026, tablets have been relegated in importance for vendors across margins, volume, and overall value," said Himani Mukka, Research Manager at Omdia. "In this supply-constrained environment, consumers and vendors alike are being more deliberate about which devices to prioritize. PC vendors are focusing on notebooks and desktops, while those operating across both smartphones and tablets are gravitating toward smartphones due to their outsized contribution to overall business."

We have been reporting on the intense demand in the CPU sector currently sweeping the industry. AMD and Intel have sold out their inventories, and lead times are now weeks long. However, Intel, which manufactures a large part of its CPU portfolio, has been handling the situation differently. According to Intel and confirmed by industry analyst Ben Bajarin, the company is repurposing some of the dies found on the very edge of the silicon wafer, which would have otherwise become silicon scrap, into products that customers are eager to buy. This approach allows even some SKUs, which may have been flawed due to various effects like silicon node yield, to find new life through repurposing. Intel's customers are so eager for CPUs that higher-end parts, which would typically be discarded, are now being sold as independent SKUs. No silicon is left behind.

For example, when Intel produces a Xeon 6 "Granite Rapids" CPU on the Intel 3 node, the CPU compute die can accommodate up to 44 cores per die, but some are disabled for yield and power reasons. When the yield fails, these compute dies are repurposed into SKUs with lower core counts, as it costs Intel money to manufacture the die, and wasting it would be a significant loss of resources. However, when the die doesn't achieve satisfactory yield on the Intel 3 production line, the company would usually discard it if it can't extract a reasonable number of working cores. Amidst one of the highest-ever recorded CPU shortages, Intel is doing the opposite. The company is using these defective or scrap dies and packaging them into lower-class SKUs to sell to its customers, as any CPU availability is crucial, and customers are eagerly purchasing them. Imagine a wafer edge, which is round, having only a few working P-Cores, and that being packaged into a CPU that a hyperscaler would integrate into their offering.

Intel is reportedly preparing yet another CPU price hike, adding to the previous increases implemented in February and March. According to the latest research and channel checks from Chinese market research firm Minutes Logic Society, Intel plans to add another price increase to its existing ones. In February, Intel implemented a first round of CPU price increases ranging from 10% to 15%, depending on the segment and SKU. Just a month later, the company introduced another increase in March, around 15%, with earlier reports suggesting a 10% hike for the consumer CPU sector, like the Core Ultra family of CPUs. This time, we are expecting another increase in May across the overall CPU portfolio, meaning that Intel will again raise prices by a few more percent, depending on the CPU sector, whether it is a Core Ultra CPU or a Xeon server processor.

The total cumulative goal for the price hike is about 30% higher compared to 2025 pricing. Interestingly, Intel is facing a significant problem with CPU supply that it can't address immediately. While a large portion of CPU production is internal, with Intel Foundry handling a bulk of orders, some CPUs require TSMC's silicon for Intel to ship these CPUs. Especially with multi-die packaging, where some parts are manufactured on Intel's node and others on TSMC's node, shipping is impossible until every part arrives and Intel assembles it with its advanced packaging.

Continued investment in AI infrastructure by major CSPs, including purchases of GPUs and deployment of in-house ASICs, has driven strong growth among AI-related chip designers, according to TrendForce's latest findings. In 2025, the total revenue of the top 10 fabless IC design houses exceeded US$359.4 billion, up 44% YoY. NVIDIA maintained its leading position, while Broadcom moved up to second place due to increased involvement in AI, overtaking Qualcomm, which continues to depend more heavily on consumer electronics.

Industry leader NVIDIA delivered another year of record revenue, supported by its strong AI chip portfolio and computing ecosystem. The company's fourth quarter revenue from data centers accounted for as much as 90% of its total. Full-year revenue rose 65% YoY to $205.7 billion—the fastest growth among the top players—with its share of total top-ten revenue increasing further to 57%.

TrendForce's latest research on the foundry industry reveals that continued investment in the AI arms race by North American CSPs and AI startups will keep demand for AI processors and supporting ICs strong in 2026. Global foundry revenue is projected to grow 24.8% YoY to approximately US$218.8 billion, with TSMC expected to post the largest increase of around 32% YoY.

Demand for advanced nodes will continue to be driven by AI GPUs from companies such as NVIDIA and AMD. Meanwhile, North American CSPs, including Google, AWS, and Meta, and AI startups such as OpenAI and Groq, are accelerating the development of their own AI chips. Many of these designs are expected to enter volume production and begin shipping in 2026, becoming key drivers for 5/4 nm and more advanced process technologies.

TrendForce's latest research on the semiconductor foundry industry reveals that advanced-node demand remained strong in 4Q25, driven by the tight supply of AI server GPUs and Google TPUs. Furthermore, the launch of new smartphones boosted wafer orders for mobile application processors (APs), supporting solid shipment performance.

On the mature-node side, PMIC orders related to servers and edge AI continued to keep 8-inch fabs running at high utilization rates, with some suppliers even considering price increases. Meanwhile, utilization rates at 12-inch fabs remained largely stable. Together, these factors pushed the combined revenue of the world's top ten foundries up 2.6% QoQ to nearly US$46.3 billion in 4Q25.

The global NAND Flash industry continued to benefit from AI infrastructure build-outs in 4Q25, according to TrendForce's latest research. All in all, the combined revenue of the top five NAND flash suppliers sharply rose 23.8% QoQ to US$21.17 billion.

The primary growth driver was explosive demand for enterprise SSDs, fueled by large-scale AI server deployments by North American CSPs. Meanwhile, severe HDD shortages and extended lead times accelerated a shift in orders toward NAND solutions, which further tightened supply. The resulting imbalance worsened NAND shortages and pushed prices higher, directly boosting supplier revenues.

AMD is seeing server CPU demand it didn't fully anticipate, with CEO Lisa Su describing it as having "far exceeded" her expectations. Speaking at the Morgan Stanley Technology, Media & Telecom Conference earlier today, Su outlined how the landscape has shifted as agentic AI applications have taken off, pushing CPUs back into the spotlight alongside accelerators. The CPU-to-GPU ratio in AI compute workloads has evolved dramatically over the past few months, and top customers reportedly told Su that CPU demand sitting alongside AI was "under-forecasted." Supply is tightening as a result. The sudden spike in customer commitments left little time for the supply chain to adjust, though AMD says it's working closely with partners to ease existing bottlenecks and expects capacity to expand over the coming year. Su expressed confidence that AMD's product lineup is well positioned to address training, inference, and agentic workloads going forward. We've also seen this play out at the customer level, with hyperscalers like Meta signing CPU agreements with AMD and NVIDIA, a sign that compute is diversifying away from a pure GPU focus.

Back in late January, Intel disclosed it had to reallocate wafer capacity from its PC division to Xeon production after hyperscalers started ordering larger quantities than anticipated, triggering a temporary shortage. Then, in early February, both Intel and AMD warned customers in China about tightening supplies, with Intel Xeon delivery times stretching to as long as six months and prices up more than 10%. AMD's situation is somewhat less difficult, but lead times have still pushed out to eight to ten weeks for some orders. On the consumer side, AMD's next-gen Ryzen 'Olympic Ridge' desktop processors based on Zen 6 are rumored to have slipped to 2027, possibly another sign that AMD is prioritizing Zen 6 chiplets for EPYC server processors.

It's no secret that GPU prices have skyrocketed lately as a result of increased AI data center demand. This has been especially true for any GPU featuring more than 8 GB of VRAM, like AMD's Radeon RX 9060 and 9070 series. However, while AMD GPUs were previously seen as a viable alternative when NVIDIA GPUs were unaffordable or unavailable, that increased demand resulted in price spikes of up to 40% by December 2025. This is based on Japanese data collected by Gaz:Log, who also found that, since that massive price hike, reduced demand has forced retailers to drop prices for both the RX 9070 XT and RX 9060 XT 16 GB GPUs by as much as 15% and 20% respectively.

Obviously, this is just one market, and it can't be guaranteed that events will play out similarly in other regions, but it is an indication that hardware pricing may be reaching a tipping point, after which we may see prices stabilize or fall slightly in response to reduced demand. It's also worth noting that AMD and NVIDIA have both been rumored to be planning to effectively increase MSRP in early 2026, which would result in price increases of at least 10% across the board. This is on top of a late 2025 price increase of $20-40 on both 8 and 16 GB GPUs.

The current AI surge is anticipated to boost both the memory and wafer foundry sectors to record-breaking revenues by 2026, based on TrendForce's recent data. Limited supply and rapidly increasing prices are likely to grow the memory market's total worth to $551.6 billion. Meanwhile, the global foundry market is also expected to reach a new peak of $218.7 billion, but the memory industry's scale will have more than doubled that of wafer foundries.

A new memory supercycle: Demand resilience and pricing power far stronger than in 2017
The previous memory supercycle from 2017 to 2019 was primarily driven by cloud data center expansions and resulted in a significant gap between memory and foundry revenues.

Intel has quietly deprecated its Software Defined Silicon initiative (SDSi), known as "Intel On Demand," according to a report from Phoronix. The company has archived the official GitHub repository for SDSi for Xeon, an effort intended to enable optional features on Intel's server processors that could be unlocked for an extra fee. Intel had hoped enterprises would pay to enable these features, but the initiative never gained mass traction and was only sporadically maintained. Because hyperscalers operate at massive scale, paying an additional fee to enable a feature on silicon they had already purchased made little sense, contributing to Intel's decision to abandon the project. Subscription services are similar in concept, but they generally apply to software on a monthly basis rather than one-time hardware activations.

Originally, Intel planned to make Quick Assist, Dynamic Load Balancer, and Data Streaming Accelerator available as On Demand features, alongside Software Guard Extensions and the In-Memory Analytics Accelerator. These were described on the Intel On Demand website as a "one-time activation of select CPU accelerators and security features." The Intel On Demand site has since been reworked to remove most information, leaving only a few documents and paragraphs. Thankfully, the idea of putting hardware features behind a paywall has not gained traction for now, leaving the paywall model to traditional software. At one point enthusiasts wondered whether Intel On Demand would trickle down to consumer CPUs, but with the project apparently dead, that possibility seems unlikely in the near term. Intel Upgrade Service existed in a similar format back in early 2010s, but was also short-lived.

Intel Corporation today reported fourth-quarter and full-year 2025 financial results. "Our conviction in the essential role of CPUs in the AI era continues to grow," said Lip-Bu Tan, Intel CEO. "We delivered a solid finish to the year and made progress on our journey to build a new Intel. The introduction of our first products on Intel 18A - the most advanced process technology developed and manufactured in the United States - marks an important milestone, and we're working aggressively to grow supply to meet strong customer demand. Our priorities are clear: sharpen execution, reinvigorate engineering excellence, and fully capitalize on the vast opportunity AI presents across all of our businesses."

"We exceeded Q4 expectations across revenue, gross margin, and EPS even as we navigated industry-wide supply shortages," said David Zinsner, Intel CFO. "We expect our available supply to be at its lowest level in Q1 before improving in Q2 and beyond. Demand fundamentals across our core markets remain healthy as the rapid adoption of AI reinforces the importance of the x86 ecosystem as the world's most widely deployed high-performance compute architecture."

This afternoon, a ZDNet South Korea news article has disclosed early details of another intriguing 2 nm project reportedly underway at Samsung Semiconductor. Specific customers are not mentioned by industry insiders, but the South Korean megacorporation's HBM (High Bandwidth Memory) development team could be tailoring custom logic dies for individual product requirements. There are rumors circulating about the computer memory R&D department selecting "foundry process nodes as advanced as 2 nm" for next-wave HBM designs. The ZDNet piece does not define whether engineers have opted into using the in-house foundry's SF2 or SF2P nodes.

Samsung's sixth-gen HBM product line (aka HBM4) is said to be based on a 4 nm process node, likely picked out from the SF4 family. According to an anonymous company insider: "Samsung Electronics is designing a custom logic die for HBM under the leadership of the custom SoC (system-on-chip) team newly established within the System LSI Business Division last year...We are building a portfolio ranging from 4 nm to 2 nm to respond to the needs of various customers." ZDNet adds that next-gen ultra-high-performance AI accelerators are expected to rely on the very best futuristic HBM modules. "Strong" AI enterprise industry demand is anticipated once 2 nm logic dies come into fruition, possibly post-2027, after the arrival of HBM4E (seventh gen).

Market research firm Niko Partners is indirectly encouraging consumers to buy the Nintendo Switch 2 before prices rise. Their 2026 forecast report highlights ten significant trends, warning that the console's current pricing is under pressure to increase. The research indicates that Nintendo may stop offering its $449 base model and instead sell only bundles priced at $499 or higher, effectively raising the price by at least $50. This projection is based on several ongoing issues: U.S. tariff pressures, rising memory component costs, and broader economic instability, which have already led Sony and Microsoft to increase their console prices after launch.

While Nintendo has kept the console's launch price stable, accessory costs have quietly increased, suggesting suppliers are already passing on higher expenses. According to Niko's analysis, the combination of tariffs, rising memory component prices, and general economic instability will likely compel Nintendo to follow Sony and Microsoft in raising hardware prices post-launch. Last December, Nintendo faced a roughly 41% increase in the cost of the 12 GB LPDDR5X modules used in the Switch 2, while the price of 256 GB of NAND flash rose by about 8%. A price increase will be necessary for Nintendo to maintain the viability of the Switch console, as the company cannot absorb all these costs alone. As DRAM and NAND prices continue to rise, these console price hikes may only be the beginning, and the coming weeks will likely show if this news is manifested in the market.

New research from Omdia shows that the semiconductor market delivered a record breaking performance in 3Q25 with industry revenue reaching $216.3bn, up 14.5% quarter-over-quarter (QoQ). This marks the first time the global semiconductor market has exceeded $200bn in a single quarter, following an already strong 2Q25, which saw 8% QoQ growth. At this pace, the industry is on track to exceed $800bn in total revenue for 2025.

3Q25 far exceeds seasonal expectations
Demand for AI and memory products remains strong, with both segments continuing to outpace the wider market. While AI has dominated recent industry narratives, Omdia notes that more segments contributed to growth in 3Q25 than in previous quarters.