GoKawiilIntel redirects fab capacity to Xeon servers amid AI chip shortage
Intel is shifting manufacturing capacity away from consumer PC chips toward data center CPUs, citing surging AI-driven demand. The company is expanding Fab 24 in Ireland to produce more Xeon processors, has started equipment installation at Fab 62 in Arizona ahead of schedule for 18A chips, and is growing advanced packaging capacity in New Mexico and Malaysia. CEO Lip-Bu Tan said Intel's Data Center and AI unit posted $7.3 billion in Q3 2026 revenue, up 17% sequentially and nearly 80% year-over-year.