HPE Expects Server Shortages To Last Throughout 2020

HPE has warned customers that it expects Intel’s supply shortages in servers to continue during the full length of 2020, and advises companies to chose alternatives such as Skylake-SP. This would suggest that the shortages are yet again lasting longer than Intel expected, and are also affecting its data center business.

HPE described that processor supply will remain constraint during 2020, in a message originally published by The Register. The full message reads:

In response, Intel has increased the wafer capacity by 25% in 2019 and plans another 25% increase in 2020. The company said this would reduce in a double digit increase in PC supply in 2019 and a high single digit increase in PC supply in 2020. 

Since 2018, Intel has embarked on a $36 billion expansion of its manufacturing network that will continue through 2024. These endeavors, as publicly announced, include installing $7 billion worth of tools in the empty Fab 42 that was once planned to go online with 14nm but is now slated for 10nm and 7nm, while also planning a new $11 billion fab in Israel. Further expansions are also being carried out or are in the planning phase in Israel ($5 billion), Oregon ($5 billion) and Ireland (two $4 billion expansions). As a result, Intel's capital spending has increased from a low of ~$7 billion in 2015 to a record $16 billion expected in 2019.

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  • NightHawkRMX
    admin said:
    advises customers to chose alternatives to the Cascade Lake-SP processors.
    AMD perhaps?
    Reply
  • DotNetMaster777
    I agree that AMD is also alternative !!!!
    Reply
  • bit_user
    NightHawkRMX said:
    AMD perhaps?
    I doubt AMD/TSMC has the available production volume to step in and completely fill this gap.
    Reply