Intel Fabs at Full Capacity as AI Server Demand Grows 20%
Intel CFO projects AI-driven server processor demand to remain strong into next year following over 20% unit growth in 2025, even as some fabs operate at or above capacity. The board will appoint Dr. Craig H. Barratt as independent chair on May 13, while U.S. senators probe its testing of blacklisted ACM Research equipment.
1. Surging AI Server Demand Strains Manufacturing
Intel’s CFO, Dave Zinsner, forecasts sustained demand for the company’s server processors into next year after unit shipments grew by more than 20% in 2025. However, some of Intel’s fabrication facilities are running at or above full capacity, prompting intensified efforts to improve manufacturing efficiency as the AI infrastructure market expands.
2. Board Elects Dr. Craig H. Barratt as Independent Chair
Effective May 13, 2026, Dr. Craig H. Barratt will succeed Frank D. Yeary as independent chair of Intel’s board. Barratt, who joined as an independent director in November 2025, brings over three decades of semiconductor leadership, including prior roles at Qualcomm and Google, and is tasked with guiding Intel’s ongoing turnaround and expansion strategies.
3. U.S. Senators Probe ACM Research Equipment Testing
A bipartisan group of six senators has requested details on Intel’s testing of semiconductor patterning tools from ACM Research, whose subsidiaries are on a Commerce Department blacklist. Intel has stated it does not use ACM equipment in its production lines and emphasizes its commitment to U.S. export controls and national security responsibilities.