IT之家 News on November 1: According to a report yesterday by Tom's Hardware, although the consumer PC market is shrinking, Intel is confident that demand from the AI industry will offset the decline in the client market.
To this end, Intel is reallocating some capacity from client CPUs to data center CPUs, expanding Fab 24 in Ireland to produce more Xeon chips, starting equipment installation early at Fab 62 in Arizona in the United States with a commitment to produce 18A chips, while also expanding advanced packaging capabilities in New Mexico and Malaysia.
Intel CEO Lip-Bu Tan said at the company's earnings call: "The industry is still going through one of the worst supply shortages in history, driven mainly by unprecedented demand for superintelligence. Against this backdrop, I am satisfied with our progress on server supply growth in the third quarter. I realize that in the coming quarters we will have to contend with the continued challenge of server demand."
The company's Data Center and AI (DCAI) business generated revenue of 7.3 billion US dollars (IT之家 note: approximately 48.688 billion RMB at the current exchange rate) in the third quarter of 2026,up 17% quarter-over-quarter and nearly 80% year-over-year. Intel expects demand for data center CPUs to remain strong in 2027-2028 as AI infrastructure operators deploy more CPU-intensive agents and inference workloads.
To meet demand for Xeon CPUs in the coming years, one of Intel's top priorities is to increase output of Xeon 6 "Granite Rapids" processors, which are manufactured using Intel 3 process technology. The company recently began expanding the capacity of the Fab 24 manufacturing complex near Leixlip, Ireland, but that capacity will not come online until the end of 2027.
To further increase Intel 3 capacity, Intel plans to convert some manufacturing resources at its Oregon fab from Intel 18A to Intel 3. These lines were originally used to manufacture Panther Lake desktop processors, but due to weakening PC demand, Intel will prioritize producing higher-demand data center products. The company expects the new Intel 3 capacity in Oregon to enter production in the second half of 2027.
Intel is also accelerating the expansion of its leading-edge manufacturing operations in Arizona. The company is speeding up Intel 18A production at Fab 52 and accelerating the installation of equipment into the adjacent Fab 62, which will become Intel's second high-volume manufacturing plant for 18A, 18A-P and derivative process technologies.