Intel redirects planned PC chip capacity toward Xeon production
Image: Primary Intel is reallocating manufacturing resources from client processors to server CPUs as demand exceeds supply, Tom's Hardware reported, citing company executives. Intel plans to convert Oregon resources intended for Intel 18A Panther Lake chips to Intel 3 production for data center processors, with additional capacity expected in the second half of 2027.
The company is also expanding Fab 24 in Ireland, accelerating equipment installation at Fab 62 in Arizona and expanding advanced packaging operations in New Mexico and Malaysia. Packaging substrates remain another constraint: Intel expects approximately 40% additional substrate capacity in the second half of 2027, while supply shortages remain particularly severe in the first half.
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