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Chipmaking giants Intel Corporation INTC and Advanced Micro Devices Inc. AMD are reportedly entering into longer-term purchase agreements with Chinese server customers.
The surge in demand for data-center processors, driven by the AI boom, has extended beyond AI accelerators to memory, networking gear, and server processors. This has given suppliers, including Intel and AMD, the leverage to negotiate long-term purchase deals, Reuters reported.
The agreements being discussed are said to lock in purchase volumes, but not prices. Most of these deals cover approximately a year of supply, with discussions also including commitments of two years or longer from some customers.
This shift mirrors trends in the memory-chip market, where the AI-driven shortage has prompted buyers to consider longer-term supply commitments.
Earlier this year, Intel and AMD had informed Chinese customers of extended wait times for server CPUs, with Intel’s lead times reaching as long as six months for certain products.
Intel and AMD did not immediately respond to Benzinga’s request for comments.
Apple Turns To China For Memory
The focus on China extends beyond Intel and AMD, with Apple also moving to secure memory chips from a Chinese supplier.
According to a Financial Times report earlier this month, Apple Inc. APPL is testing DRAM chips from China’s ChangXin Memory Technologies (CXMT) for devices sold in China and is reportedly lobbying the U.S. government to allow broader use of the supplier’s products.
Analyst Ming-Chi Kuo said Apple’s reported push to secure memory chips from China’s CXMT is driven by fears of a worsening global chip supply shortage through 2027, not lower costs, as more memory production shifts toward AI data centers.
Intel Expands AI, Cuts Jobs
The news comes amid a series of significant developments for Intel. Earlier this week, the company announced a memory upgrade and an Alphabet Inc.’s GOOGL GOOG Google AI deal. Intel is also upgrading its Xeon 6 platform with 8000 MT/s RDIMM support on select Xeon 6700P processors, boosting memory speeds by 25%, increasing bandwidth by up to 20%, and reducing latency by 6% to better handle AI workloads. Production is expected in August–September 2026.
Intel will deploy Gemini Enterprise across engineering, supply chain, and corporate operations while using Google Cloud to power AI agents, automate workflows, and accelerate chip development. The partnership also expands AI tools for coding, marketing, and communications.
Meanwhile, Intel has begun another round of layoffs, this time targeting its Data Center and AI Group, as CEO Lip-Bu Tan presses ahead with a major restructuring ahead of the company’s second-quarter earnings report on July 23, after market hours.
Intel holds a momentum rating of 99.02%, according to Benzinga’s Proprietary Edge Rankings. Benzinga’s screener allows you to compare INTC’s performance with its peers.
INTC Price Action: On a year-to-date basis, Intel stock surged 160.59%, as per Benzinga Pro. On Wednesday, the stock fell 2.68% to close at $102.62.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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This article Intel And AMD Eye Multi-Year Server Chip Deals With Chinese Customers amid AI Boom: Report originally appeared on Benzinga.com.
