Intel plans to increase the prices of its processors for personal computers by about 10% due to rising costs of components, including a significant surge in memory prices. This move could put additional financial pressure on PC manufacturers and may lead to higher end-user prices for devices.

In recent weeks, the company introduced new Core Ultra processors for laptops and desktops. Alongside the launch of these new products, Intel is also planning to adjust prices for its existing line of PC processors. The price hike is expected to affect a wide range of mainstream models and will be implemented at the OEM level, meaning PC manufacturers will start purchasing processors at higher prices as early as the end of this month. So far, there have been no confirmed changes to official retail or recommended prices.

The main reason for the price increase is the rising costs throughout the semiconductor supply chain, especially due to the sharp rise in memory prices over the past few months. This is linked to growing demand for infrastructure supporting artificial intelligence and the expansion of data centers, which has caused supply imbalances for components across different industry sectors. More and more manufacturing capacity is now being directed toward producing components for AI rather than for consumer PCs.

Processors make up a significant portion of the total production cost of a PC. According to industry estimates, Intel holds about 70% of the PC processor market, so any price changes have a direct impact on manufacturers’ profits. While AMD and Qualcomm are also expanding their presence in the market, Intel remains the primary supplier.

The increase in production costs is not limited to processors. Memory prices are rising at record rates—market data shows growth of up to 180% quarter over quarter. Market research indicates that processors and memory together can account for up to 58% of a laptop’s production cost, especially in the mass-market segment for devices priced around $900.

As a result, PC manufacturers may face shrinking profit margins due to higher expenses. Ongoing inflation in component costs could lead to higher end-user prices, particularly in the laptop segment, depending on how much of the increased costs are passed on to consumers.