HP Inc. (HPQ) Balances Procurement Strategy With Security Commitments

HP Inc. (NYSE:HPQ) is one of the best affordable tech stocks to buy right now. A Nikkei report on February 5 stated that HP Inc. (NYSE:HPQ) is one of four companies that are actively considering sourcing memory chips from Chinese manufacturers for the first time. According to the report, this is a significant shift in procurement strategy for the world’s leading PC brands, who traditionally rely on American, South Korean, and Taiwanese suppliers for critical components.

Already, Dell and HP have begun qualifying DRAM chips from ChangXin Memory Technologies. This process involves testing the components to ensure they meet quality and performance standards. Meanwhile, Acer and Asus are requesting that their Chinese manufacturing partners source locally-made memory chips for production.

The four companies’ move happens when the world is experiencing a severe memory shortage that has disrupted electronics supply chains, said Nikkei. It added that Samsung, SK Hynix, and Micron, which collectively control over 90% of the DRAM market, have redirected the majority of their manufacturing capacity toward producing high-bandwidth memory (HBM) for AI data centers.

Separately, on February 3, HP renewed its multi-year agreement with Karamba Security to continue licensing Karamba’s XGuard cybersecurity software for use across its printer products. The renewal extends a partnership that began in 2020 for three more years.

According to HP, the agreement covers its networked and cloud-connected printers, which are treated as computing devices with firmware that can be targeted by cyberattacks. Karamba’s XGuard technology is integrated into the firmware to help defend against threats.

HP Inc. (NYSE:HPQ) develops and sells personal computers, printers, and related hardware, software, and services. Its product portfolio includes laptops, desktops, printers, and imaging solutions, serving both consumer and enterprise markets worldwide.

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Disclosure: None. This article is originally published at Insider Monkey.