Hewlett Packard Enterprise CEO says navigating the chip shortage won’t be easy — but end is in sight

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  • Hewlett Packard Enterprise President and CEO Antonio Neri said: “It’s not going to be easy, but I really believe we will be in a better position after the summer of 2022.”
  • The new chip manufacturing plants, known as fabs, will come online and create more capacity, Neri said, adding that this should ease some of the supply chain issues.
  • He added that HPE has suppliers around the world and the company is constantly thinking about how it manufactures its products.

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It’s going to be difficult to navigate the global chip shortage, according to Antonio Neri, president and CEO of Hewlett Packard Enterprise, which sells hardware and software to businesses around the world.

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“It’s not going to be easy, but I really believe we’ll be in a much better position after the summer of 2022,” Neri told Businesshala’s Karen Tso on Wednesday. His remarks came in response to a question whether the coronavirus pandemic could lead to further chip shortage issues.

The new chip manufacturing plants, known as fabs, will come online and create more capacity, Neri said, adding that this should ease some of the supply chain issues.

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German technology and engineering conglomerate Bosch has built a new 1 billion euro ($1.2 billion) semiconductor plant in Dresden – the capital of the German state of Saxony and one of Europe’s largest semiconductor groups – over the past two years and production began in July. Happened.

Harald Kroger, a member of the Bosch management board, told Businesshala in August that the supply chain has been down in the past year as demand for chips in everything from cars to PCs and electric toothbrushes has increased around the world.

Major chip makers including TSMC, Samsung and Intel have also recently announced new factories, but they won’t be ready for many years and they will make advanced chips, which are more plentiful than some older chips.

Neri said HPE has suppliers around the world and the company is constantly thinking about how it manufactures its products. “We’re getting smarter about how we manufacture products, the composition of building materials, the ability to substitute components along the way,” he said.

Neri said that like many other companies, HPE has long-term agreements with its chip suppliers to ensure it gets the chips it needs.

Gartner analyst Alan Priestley told Businesshala on Wednesday that PC buyers should try to be flexible when choosing their machine.

“If you want to buy a new PC, you have a lot of flexibility in terms of the type of CPU (central processing unit),” he said. “CPUs vary greatly in price. Therefore, it may well be that your desired configuration is not available, but a different configuration is available. Consider alternatives.”

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