Intel CPU Price Hike, Tong Zhi-xian: Short-term Adjustments Not to Worry About

(Central News Agency, reporter Wu Jia-hao, Taipei, July 7) Intel (Intel) announced a price increase for consumer and server central processing units (CPUs), affecting the market in the second half of the year. Pegatron Chairman Tong Zhi-xian said today that price increases and shortages indicate a more active market, and short-term price adjustments should not be overly concerning. He is more focused on the long-term development trends of the technology industry, and the outlook remains optimistic.

Tong Zhi-xian attended the 2026 Resilient Taiwan Summit in the afternoon and accepted media interviews. When discussing Intel's processor price increase, he said that recently there have been many price increase issues from ICs, materials, substrates to passive components, reflecting that the current market is relatively active.

"If prices increase, it means that in supply and demand, the supply side may have more pricing power," Tong Zhi-xian analyzed. When the industry faces shortages, people may actively pursue goods before they can obtain raw materials or products, thus driving price adjustments.

He used the development of the internet as an example. The scale of the internet today has expanded countless times compared to 2000. It has gone through ups and downs. There used to be few companies with a market capitalization exceeding 500 billion US dollars in the US stock market, but in the past 5 or 6 years, many companies have exceeded one trillion US dollars in market capitalization. The Taiwan stock market has also seen continuous new highs in the past 2 or 3 years, making people worry if it is overheated.

Tong Zhi-xian pointed out that whether technologies like artificial intelligence (AI) are overheated depends on whether they make substantial contributions to human work, life, and quality. For example, it was once thought that medicine and technology were not directly related, but now advancements in AI and the da Vinci surgical system have greatly helped medicine, and AI can even be used to accelerate new drug research and development, shortening the time by two-thirds.

He said that as long as technology can improve the efficiency, productivity, safety, and convenience of modern civilization, the long-term demand will continue to expand, and manufacturers will expand production accordingly. After expansion, prices may be adjusted again in a few years, but if convenience and demand increase, forming a virtuous cycle that continues to roll, "I don't think it's a bad thing."

It is rumored in the market that NVIDIA's new generation Kyber architecture AI cabinets may be delayed due to bottlenecks in the production of key circuit boards. NVIDIA has already issued a statement responding that "the product roadmap remains unchanged." In this regard, Tong Zhi-xian said that short-term pull-ins, shortages, and stagnation are all common occurrences that the industry is very familiar with.

"I am actually more concerned about the big trends behind it," Tong Zhi-xian said. He gave an example that he only checks the market twice a month and misses a lot of intermediate fluctuations. Whether it is factory production arrangements or research topics, they are not planned in 1 or 2 weeks, but rather planned based on 3 to 5-year trends.

Tong Zhi-xian frankly stated that he is still very optimistic about the technology industry so far. As long as technology can continue to improve the convenience and quality of modern life, and increase efficiency and productivity, the prospects remain promising. (Editor: Zhang Jun-mao) 1150707

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