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Super Micro Computer, Inc., doing business as Supermicro, is an American information technology company based in San Jose, California. The company is one of the largest producers of high-performance and high-efficiency servers,[2] while also providing server management software, and storage systems for various markets, including enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing.[3][4][5][6][7][8] Supermicro was founded on November 1, 1993, and has manufacturing operations in Silicon Valley, the Netherlands, and in Taiwan at its Science and Technology Park.

Key Information

History

[edit]

In 1993, Supermicro began as a five-person business operation run by Charles Liang, a Taiwanese-American, alongside his wife and company treasurer, Chiu-Chu Liu, known as Sara.[9] Prior to founding Supermicro, Liang earned a B.S. in electrical engineering from the National Taiwan University of Science and Technology and a M.S. in electrical engineering from the University of Texas at Arlington. Liang holds several patents for server technology and was previously the president and chief design engineer of Micro Center Computer, a motherboard design and manufacturing company, from July 1991 to August 1993.[10] Liang stated that the company was able to turn a profit after six months of operation.[11]

Manufacturing expansion, local and international

[edit]

The same year it was founded, Supermicro established its first European partnership with Boston Limited, a UK-based IT solutions provider, which launched Supermicro products into the UK and European markets. The continued collaboration has seen several Supermicro technologies introduced to Europe, including the P5EXTRA in the 1990s, the 1U Twin in 2006, and innovations such as the Supercool 1U Twin in 2007[12] and high-performance GPU computing systems in 2009.[13]

In 1996, the company opened a manufacturing subsidiary, Ablecom, in Taiwan, which is run by Charles's brothers, Steve Liang and Bill Liang. Charles Liang and his wife own close to 31 percent of Ablecom, while Steve Liang and other members of the family own close to 50 percent.[3]

In 1998, Supermicro opened a subsidiary in the Netherlands.[9] In May 2010, Supermicro further expanded into Europe with the opening of its system integration logistics center in the Netherlands.[14]

In 2012, the company opened its Taiwan Science and Technology Park, totaling $99 million in construction costs.[15] The Taiwanese factory was expanded in 2019 and came online in 2021.[11]

In September 2014, Supermicro moved its corporate headquarters to the former Mercury News headquarters in North San Jose, California, along Interstate 880, naming the campus Supermicro Green Computing Park.[16][17][18] In 2017, the company completed a new 182,000 square-foot manufacturing building on the campus, which was designed to meet LEED gold certification.[19][20] The company expanded its San Jose campus in September 2021 with a manufacturing facility for advanced storage and server equipment. Supermicro was reported to have 2,400 people working in San Jose.[21]

In February 2025, Supermicro began building its third California-based manufacturing campus. The new campus is being developed with the intention to increase production of liquid-cooled services for data centers.[22] The company produces a majority of its servers in California. Following a push for more state-side manufacturing by American President Donald Trump, Supermicro considered expanding server production in states like Mississippi and Texas.[23] A few months later, in July 2025, Supermicro expressed its interest in expanding investment regarding manufacturing in Europe to meet artificial intelligence demand in the area.[24]

In October 2025, Supermicro created a subsidiary focusing on American federal agencies, which would provide cloud-services and data center materials manufactured from its facilities in Silicon Valley, California.[25]

Products

[edit]

In 1995, Supermicro released a dual-CPU motherboard for servers, becoming one of the first companies to do so. The motherboard was followed up by a four-CPU server board.[11]

In 2004, Supermicro began to develop energy-saving servers, which was partially influenced by Liang watching the movie The Day After Tomorrow with his family.[11]

In 2008, Supermicro was among ten computing companies brought on to the Hyperion project by the National Nuclear Security Administration's Lawrence Livermore National Laboratory. The companies helped to develop a testbed for high-performance computing technologies for the purpose of maintaining the U.S. nuclear weapons stockpile while avoiding underground nuclear testing, and improving the industry’s ability to make petaFLOP/s (quadrillion floating operations per second) computing and storage more accessible.[26]

In 2012, Supermicro debuted its new 2U and 4U/Tower platforms.[27]

In 2016, Supermicro sent 30,000 MicroBlade servers to a Silicon Valley data center with a claimed power usage effectiveness (PUE) of 1.06.[28] While Supermicro did not name the customer, it was likely Intel, who opened a similar data center in November 2015 with a PUE of 1.06.[29]

In April 2020, Supermicro announced the H12 A+ Superblade, a blade server based on the 2nd gen Epyc 1P family of CPUs. It was the first blade server platform to implement AMD's Epyc processors.[30]

In April 2021, Supermicro introduced over 100 application-optimized server product SKUs using (new at the time) 3rd Gen Intel Xeon Scalable processors, including Hyper, SuperBlade, the Twin Product Family (BigTwin, TwinPro, and FatTwin), Ultra, CloudDC, GPU, Telco/5Gand Edge servers.[31]

In July 2024, VentureBeat reported that Supermicro would be providing half the servers for Elon Musk's artificial intelligence start-up, xAI, with Dell providing the other half.[32] The project was completed in 122 days according to the company, resulting in the creation of a 750,000 square foot Memphis-based data center to host Colossus, a supercomputer.[33] Supermicro also supplied servers for Tesla's Gigafactory Texas.[34]

In May 2025, Supermicro released its Direct Liquid Cooling (DLC-2) and Data Centre Building Block Solutions (DCBBS), intending to expand upon and improve technologies related to AI data centers.[35]

In November 2025, Supermicro reported fiscal first-quarter 2026 results under expectations, stating that "design win upgrades" on server projects, where $1.5 billion in expected revenue shifted due to a high-volume customer requesting last minute updates, which extended integration, testing, and validation times for new GPU-based systems. Additionally, the company received $13 billion in orders on systems based on the Nvidia Blackwell Ultra-based GB300 architecture.[36] In the same month, Supermicro displayed new products at the 2025 Supercomputing Conference, including the Nvidia GB300 NVL72 rack, 8U and 6U SuperBlade multi-node systems, 2U FlexTwin, HGX B300 4U rack, GB200 NVL4 1U server, and GB300-based developer workstation. Updates to the modular and blade families such as BigTwin, MicroBlade, and MicroCloud were also shown at the conference.[37]

Partnerships

[edit]

In 2023, Supermicro partnered with Rakuten Symphony on high-performing Open RAN technologies and storage systems for operators of cloud-based mobile services.[38] Later in the year, Supermicro debuted servers with liquid cooling, focusing on ESG policies. The servers save approximately 40% of the power expended on air-cooled data centers.[39] In June 2023, Supermicro saw increased demand for its large language model optimized AI systems, featuring NVIDIA chips.[40]

In October 2024, Supermicro announced a partnership with Fujitsu, a Japanese IT services company, where the two companies will jointly develop energy-efficient servers and liquid-cooling systems for high-performance computing, generative artificial intelligence, and data centers.[41]

On December 25, 2024, Super Micro Computer announced a joint venture with Taiwanese development company Guo Rui to build an artificial intelligence data center powered solely by renewable energy at an undisclosed location in Taiwan.[42]

In May 2025, Supermicro announced a $20 billion partnership with DataVolt, a Saudi Arabian data center company. Under the agreement, Supermicro will supply GPU platforms and rack systems for DataVolt’s AI campuses in both Saudi Arabia and the United States.[43]

In September 2025, Supermicro announced an artificial intelligence-based partnership with Nokia, focusing on integrated data center network products.[44] In the following month, Supermicro would partner with Hitachi Vantara, each allowing the other company to offer their products through the opposing companies, focusing on artificial intelligence applications and data lakehouses.[45]

Corporate affairs

[edit]

Board of directors

[edit]

As of May 2025, Supermicro's board of directors consists of co-founder Charles Liang, co-founder Sara Liu, Wally Liaw (another founding member of the company), Daniel W. Fairfax, Tally Liu, Sherman Tuan, Judy Lin, Robert Blair, Susie Giordano, and Scott Angel.[46] Giordano joined the board in August 2024 and served as the only member of Supermicro's special committee to oversee an internal audit of concerns raised by EY.[47] In April 2025, the company's former senior vice president of corporate development, Yitai Hu, became its chief legal officer, serving as Supermicro's general counsel.[47]

Financials

[edit]

On March 8, 2007, Supermicro raised $64 million in an initial public offering, selling 8 million shares at $8 a share.[48] Supermicro's stock trades under the ticker symbol SMCI[49] on the Nasdaq exchange.

In 2009, Supermicro sold about $720 million worth of computer servers and related products and employed almost 1,100 people.[50] By the end of 2023, the company had reported a fiscal year 2023 revenue of $7.1 billion and employed over 5,000 workers globally.[51]

Supermicro replaced Whirlpool in the S&P 500 after a large rally in the company's stock lifted its market cap from $4.5B at the end of 2022 to $60B in March 2024.[52][53]

In June 2024, Supermicro made its debut on the Fortune 500 list, reaching number 498.[54] By 2025, the company had climbed 206 spots, earning the 292nd position on the list.[55]

On July 22, 2024, Supermicro became a Nasdaq-100 company, replacing Walgreens Boots Alliance in the index.[56] Supermicro was removed from the index in December 2024.[57]

Recognition

[edit]

Supermicro has won multiple Product of the Year awards at the NAB Show, including its Supermicro server certified with NVIDIA Omniverse Enterprise software in 2022,[58] the Liquid Cool AI Development Platform in 2023,[59] and the Supermicro and RAVEL Turnkey Workload Solution for Generative AI in 2025.[60]

Controversy

[edit]

In 2006, Supermicro pleaded guilty to a felony charge and paid a $150,000 fine due to a violation of a United States embargo against the sale of computer systems to Iran.[61] In a plea agreement, it was acknowledged that Supermicro became aware of the investigation in February 2004 and set up an export-control program that same year.[61]

In November 2021, the joint venture of Super Micro Computer and Fiberhome Telecommunication Technologies won a contract for supplying servers to Xinjiang Bingtuan for 'public safety purposes', which is associated with the suppression of Uyghurs ethnic group and construction of a surveillance system in the province of Xinjiang.[62][63][64][65]

Server tampering allegation

[edit]

On October 4, 2018, Bloomberg Businessweek published a report, citing unnamed corporate and governmental sources, which claimed that the Chinese People's Liberation Army had forced Supermicro's Chinese sub-contractors to add microchips with hardware backdoors to its servers. The report claimed that the compromised servers had been sold to U.S. government divisions (including the CIA and Department of Defense), contractors, and at least 30 commercial clients.[66][67][68] Supermicro denied the report, stating that they had not been contacted by government agencies and were unaware of any investigation.[69][70][71][72] The report was also disputed by sources and companies who were named therein.[71][70]

On October 9, 2018, Bloomberg issued a second report, alleging that Supermicro-manufactured datacenter servers of a U.S. telecom firm had been compromised by a hardware implant on an Ethernet connector.[73][74][75] In response to the article, Supermicro announced that it would review its motherboards for potential spy chips,[76] later filing a letter with the Securities and Exchange Commission stating that it was "confident" that "no malicious hardware chip had been implanted" during the manufacture of its motherboards.[77]

In February 2021, Bloomberg Business reported that U.S. intelligence used the altered servers to gather intelligence about China, warning only a small number of potential targets, despite those servers allegedly having been compromised since 2011.[78]

Accounting practices

[edit]

Supermicro settled with the SEC in August 2020 over violations in accounting practices between 2014 and 2017 by the company and its former chief financial officer, and agreed to pay $17.5 million in penalties. In 2018, the company was briefly delisted from the Nasdaq after delaying to file financial reports by nearly two years.[79][80]

2024 Hindenburg Research short-seller report

[edit]

In 2024, short-seller Hindenburg Research alleged that Supermicro continued to engage in accounting violations, adding that the company rehired executives who were involved in the accounting scandal. The report also alleged that the company was evading U.S. export restrictions by shipping advanced technology products to Russia,[81] similar to a 2021 Washington Post report co-written by Russian dissident authors Andrei Soldatov and Irina Borogan, accusing the company of supplying servers to a Moscow control center for Internet censorship in Russia. In the latter instance, Supermicro responded by stating the following: "Supermicro complies with applicable laws and regulations, and our policies are consistent with international principles of human rights. We act appropriately to ensure this is the case."[82] Hindenburg's report also pointed out alleged "circular" financial relationship with Supermicro's suppliers, Ablecom and Compuware, which are controlled and partially owned by the brothers of Supermicro's CEO.[81] The next day, Supermicro said it would delay the filing of its annual report.[83]

The U.S. Department of Justice (DOJ) opened a preliminary probe into the company a month after the report, according to The Wall Street Journal.[84] Supermicro was subpoenaed by the DOJ and the Securities and Exchange Commission, seeking documents related to the report.[85]

In October 2024, Supermicro's auditors, Ernst & Young resigned after raising significant concerns over the company's internal controls, board independence and accounting practices.[86] The company created an independent special board committee comprising board members and external counsel to evaluate issues raised by Ernst & Young, which would later find no evidence of misconduct.[87] The board also started searching to replace the CFO.[88] In the next month, Supermicro hired a new auditor, BDO Global.[89] On February 25th, 2025, the company filed its annual report, just before the end of its extended deadline. Supermicro included an additional note in its filing, saying "it had identified material weaknesses in internal controls over financial reporting", and in response to those issues, "plans to hire additional accounting and audit employees, and to upgrade IT systems."[90]

References

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Supermicro

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Super Micro Computer, Inc. (Supermicro) is a multinational company specializing in the design, development, and manufacture of high-performance, energy-efficient servers, storage systems, and networking solutions tailored for enterprise data centers, , infrastructure, , and edge applications. Founded in 1993 by Charles Liang in —its current global headquarters—the company pioneered modular Server Building Block Architecture to enable customizable, scalable IT systems based on open standards. With manufacturing facilities spanning over 6 million square feet across Silicon Valley, Taiwan, and the Netherlands, Supermicro operates in more than 100 countries and achieved $22 billion in revenue for fiscal year 2025. Ranked as the third-largest server supplier worldwide by IDC, it has become a key enabler of the , deploying over 100,000 liquid-cooled GPUs to support large-scale AI factories and training workloads. Supermicro's growth has been propelled by demand for its application-optimized systems integrating advanced processors from partners like AMD and NVIDIA, positioning it as a critical supplier for hyperscale data centers and on-premises AI deployments. The company joined the Fortune 500 and indices amid this expansion, reflecting its transition from a niche innovator to a major player in and /edge infrastructure. In 2024, it encountered challenges including the resignation of auditor over internal control concerns and a delayed annual filing prompted by short-seller allegations of accounting irregularities, though Supermicro asserted no prior financial restatements were required and completed the filing with a new auditor.

History

Founding and Early Development

Super Micro Computer, Inc., commonly known as Supermicro, was founded in September 1993 by Charles Liang in San Jose, California. Liang, a Taiwanese-born electrical engineer who immigrated to the United States, established the company to develop high-performance server motherboards and systems, capitalizing on the emerging demand for scalable computing solutions in Silicon Valley during the mid-1990s technology expansion. The initial operation consisted of a small team of five employees, including Liang's wife, Chiu-Chu Liu (also known as Sara Liu), who served as the company's treasurer. In its early years, Supermicro prioritized customization and reliability in server designs, focusing on energy-efficient architectures and modular components to differentiate from larger competitors like and . The company achieved profitability from its first year of operations, a rarity for startups in the hardware sector, by leveraging Liang's expertise in and . Co-founder Yih-Shyan Liaw joined as Senior Vice President of Business Management, contributing to early engineering and operational strategies. By the late , Supermicro had expanded its product offerings to include complete server systems tailored for enterprise and applications, establishing a reputation for quick adaptation to processor advancements from and . A key milestone in early development occurred in 1998 with the opening of a manufacturing facility in the , aimed at reducing lead times and serving the European market more effectively amid growing global demand for high-density computing. This move reflected Supermicro's strategy of , controlling design, assembly, and testing to maintain quality and cost advantages, while navigating the dot-com boom's volatility without over-reliance on speculative financing. Throughout this period, the company avoided significant debt, sustaining growth through reinvested earnings and partnerships with suppliers.

Expansion into Global Markets

Super Micro Computer established its first international manufacturing presence in in 1996, leveraging the region's efficiencies for component sourcing and assembly. This move supported early growth in markets, where the company expanded operations to include the Supermicro Taiwan Science and Technology Park. By the early 2000s, following its 2007 , Supermicro accelerated global distribution, establishing subsidiaries and logistics centers to penetrate and other regions. In , Supermicro opened a subsidiary in the to handle system integration, assembly, and distribution, enhancing service responsiveness amid rising demand for high-performance servers. The company now operates manufacturing facilities across the (), , and the , with total global campus space exceeding 3 million square feet following expansions adding over 1 million square feet in recent years. These sites enable localized production, reducing latency in supply chains for enterprise and customers. Over 4,000 employees support operations spanning more than 100 countries, with particular emphasis on growth in EMEA and APAC regions. Recent expansions have been driven by surging demand for AI infrastructure. In 2024, Supermicro announced plans for three additional manufacturing facilities in and internationally to scale production of liquid-cooled rack-scale solutions. By mid-2025, the company committed to broadening European capacity beyond existing Dutch operations, including enhanced local assembly, service, and logistics to meet AI server needs, amid reports of rapidly growing continental demand. This includes support for Blackwell-based systems tailored for European AI factories. Geographically disaggregated revenue reflects this international focus: for the period ended June 30, 2025, net sales totaled approximately $22 billion, with the United States at $13.05 billion, Asia at $5.49 billion, Europe at $2.73 billion, and other regions at $698 million. While the U.S. remains the dominant market, international segments have shown accelerated growth, underscoring the strategic value of global facilities in diversifying revenue and mitigating regional supply risks.

Adaptation to AI and Cloud Demands

Supermicro responded to escalating demands for AI infrastructure by prioritizing the development of GPU-dense server platforms optimized for machine learning training, inference, and high-performance computing workloads. These systems, often incorporating up to multiple NVIDIA Blackwell GPUs per node, enable efficient scaling for large-scale AI clusters, as demonstrated in deployments by partners like Lambda Labs for production-ready AI factories. The company's modular building block approach allows rapid customization and deployment of rack-scale solutions, supporting hyperscalers and enterprises transitioning to AI-driven cloud environments. To address thermal challenges in power-intensive AI setups, Supermicro introduced direct liquid cooling technologies integrated into its server designs, capable of handling densities exceeding traditional limits and reducing in centers. This adaptation aligns with the requirements of next-generation AI hardware, where GPU power draws can surpass 1,000 watts per unit, necessitating advanced thermal management for sustained performance. Collaborations with cooling specialists and chipmakers like and further refined these solutions, enabling Supermicro to deliver pre-integrated systems for edge AI and cloud repatriation scenarios. Strategic partnerships have been central to this evolution, including close integration with for validated AI reference architectures and with for processor-based Instinct GPU servers, broadening compatibility across AI frameworks. These efforts contributed to substantial revenue expansion, with fiscal year 2025 net income reaching $1.0 billion amid AI-fueled demand, though quarterly guidance adjustments reflect variability in component sourcing. By mid-2025, Supermicro's global manufacturing expansions, including new facilities to support AI system assembly, positioned it to capture a larger share of the projected multi-trillion-dollar AI infrastructure market.

Products and Technologies

Core Hardware Offerings

Supermicro's core hardware offerings center on modular server building blocks designed for data centers, enterprise, and environments. These include rackmount servers supporting single- or dual-socket configurations with Intel Xeon or AMD EPYC processors, available in form factors from 1U to 4U, optimized for density and scalability. The company's Building Block Solutions (DCBBS) enable customizable systems for , AI, and edge applications, featuring innovations like the Twin for dual-node efficiency in limited space. GPU-accelerated servers form a key segment, engineered for AI, , and HPC workloads, supporting GPUs such as the Blackwell HGX B200 and GB200 series for enhanced performance in liquid-cooled racks. Storage solutions encompass JBOD, all-flash NVMe systems, and hybrid configurations with up to 90 bays in 4U chassis, targeting enterprise data management and big data analytics. Motherboards and chassis provide foundational components, with high-end boards supporting up to 144-core CPUs, DDR5 up to 1TB per socket, and NVMe drives for workstations and servers. , including Super I/O Modules (SIOM), offers flexible Ethernet options from 1Gb/s to 100Gb/s, reducing I/O costs by up to 50% in blade and rack systems. These offerings emphasize energy efficiency and rapid deployment, with quick-ship options for mainstream servers.

Specialized Solutions for High-Performance Computing

Supermicro provides a range of high-performance computing (HPC) solutions, including optimized servers, storage systems, and networking infrastructure designed for demanding workloads such as scientific simulations, AI/ML training, and financial modeling. These solutions emphasize rack-scale integration, supporting clusters from hundreds to thousands of CPU cores with plug-and-play deployment to enhance scalability and efficiency. Key server architectures include the SuperBlade® multi-node blade systems, FlexTwin™ dual-processor platforms, and GPU-accelerated SuperServers, which integrate processors from Intel (e.g., 4th Gen Xeon Scalable) and AMD (e.g., EPYC series) alongside accelerators like NVIDIA H100 GPUs with NVLink interconnects or AMD Radeon Instinct GPUs. For instance, the SuperBlade systems power large-scale deployments, such as Osaka University's SQUID supercomputer featuring 27 racks with 1,520 blades and over 120,000 cores for advanced research. GPU servers form a cornerstone of Supermicro's HPC portfolio, supporting configurations with up to eight GPUs per node, such as in 4U or 8U chassis optimized for parallel processing in HPC and AI applications. Recent models incorporate B300 GPUs with up to 21 TB of HBM3e memory and 17 TB of LPDDR5X system memory, enabling high-throughput computations for and scientific visualization. Networking options leverage high-speed fabrics like Architecture to minimize latency in distributed environments, while storage solutions provide petabyte-scale capacity with redundancy for data-intensive HPC tasks. Examples include Lawrence Livermore National Laboratory's Corona system, which utilizes over 1,000 GPUs to achieve 11 petaflops of performance for simulations. Innovations in cooling and efficiency are integral to Supermicro's HPC offerings, particularly rack-scale direct liquid cooling (DLC) solutions that reduce power consumption by up to 40% compared to , addressing thermal challenges in dense GPU deployments. The , for example, features liquid-cooled multi-node designs purpose-built for HPC at scale, supporting workloads in scientific and complex modeling. In October 2024, Supermicro introduced a complete liquid cooling ecosystem including coolant distribution units (CDUs), cold plates, and manifolds, tailored for AI and HPC with integration for HGX B200 8-GPU systems. By May 2025, the DLC-2 platform extended this with in-rack CDUs and modular blocks for rapid deployment in energy-efficient data centers. Complementary software for life-cycle monitoring and ensures reliability, with custom services via Supermicro's Datacenter for optimized cluster builds.

Innovations in Efficiency and Scalability

Supermicro has developed modular server architectures, such as the MicroBlade platform, which enable high-density computing with significant reductions in cabling, space, and energy use. The 6U MicroBlade system, introduced in October 2025 and powered by 4005 series processors, achieves up to 95% cable reduction, 70% space savings, and 30% energy savings compared to traditional rack servers, facilitating scalable deployments in data centers. This building-block design supports rapid scaling for cloud service providers by integrating centralized management and built-in networking, minimizing deployment complexity while optimizing resource utilization. In parallel, Supermicro's direct liquid cooling (DLC) technologies address thermal efficiency challenges in (HPC) and AI workloads. The DLC-2 solution, launched on May 14, 2025, reduces power consumption by up to 40% relative to air-cooled systems, alongside cuts in water usage, noise, and space, lowering (TCO) by up to 20%. These rack-scale liquid cooling implementations, capable of supporting over 100,000 GPUs per quarter as of October 2024, integrate with modular cooling towers using energy-efficient EC fan technology for quick deployment. By disaggregating compute, storage, and networking components, Supermicro's designs further enhance energy efficiency, drawing on over two decades of server optimization to minimize environmental impact without compromising performance. For scalability in AI and HPC, Supermicro's SuperCluster architecture supports expansion to thousands of GPU nodes, leveraging accelerated computing for (LLM) training and generative AI inference. This rack-scale approach, including AI-optimized storage solutions introduced in January 2024, accelerates pipelines by integrating high-throughput storage with compute resources, reducing implementation risks and enabling faster model training. Complementary platforms like SuperBlade provide density-optimized multi-node systems for AI and HPC, with redesigned X14 series servers in 2024 offering workload-specific form factors for edge-to-cloud scaling. These innovations prioritize open, standards-based to allow seamless horizontal and vertical scaling, addressing the exponential demands of AI-driven data centers.

Operations and Supply Chain

Manufacturing Facilities and Processes

Supermicro operates manufacturing facilities in the United States and , emphasizing to enable rapid customization and testing of server systems. The company's production shifted away from in 2019 amid risks, with expansions in , and Taiwanese sites to bolster capacity for AI and demands. In , Supermicro maintains multiple campuses in San Jose, its headquarters location since founding in 1993. A third campus expansion was announced on February 28, 2025, projected to reach approximately three million square feet to support U.S.-based of complete rack-scale solutions. These facilities incorporate 20 megawatts of power capacity, enabling production exceeding 1,500 direct liquid-cooled racks monthly, with strict inspections including X-ray scanning under the Made-in-the-USA program using vetted domestic personnel. In June 2024, plans for three additional facilities were revealed to accelerate liquid-cooled AI deployments. Taiwan hosts key production sites, including the Supermicro Science & Technology Park in Taoyuan City's Bade District at No. 1899, Xingfeng Road, established with expansions since 2012. A for an 800,000-square-foot facility occurred in 2019 to enhance R&D and . In December 2024, Supermicro partnered with Taiwan's Guo Rui for a center powered solely by renewables, aligning with sustainable builds in . These sites support modular assembly for edge-to-cloud solutions. Manufacturing processes leverage in-house vertical integration, from component sourcing to full rack-scale assembly and validation, facilitating first-to-market innovations in air- and liquid-cooled architectures. Global capacity reaches 5,000 fully tested air-cooled or 2,000 liquid-cooled racks per month, with direct-to-chip cooling integrated at the rack level for AI workloads. This approach minimizes lead times through building-block modularity, allowing tailored HPC systems while maintaining traceability and quality control.

Supply Chain Management and Sourcing

Super Micro Computer, Inc. (Supermicro) primarily sources key components such as motherboards from suppliers in and , outsourcing production to firms including , , and Universal Scientific Industrial. In 2019, amid U.S.- tensions, the company relocated certain production activities away from to mitigate tariffs and geopolitical risks. To manage supply chain vulnerabilities, Supermicro operates manufacturing and assembly facilities in the United States (primarily ), , and the , enabling localized production and reduced exposure to regional disruptions. As of February 2025, the company expanded its U.S. footprint with a third campus dedicated to advanced IT solutions, alongside announcements for additional facilities to meet surging demand for AI-optimized servers. These expansions aim to enhance and resilience, particularly for rack-scale liquid-cooled systems. Supermicro's sourcing strategy includes supplier audits to enforce compliance with anti-trafficking and anti-slavery standards, conducted on a random basis to verify adherence to company policies. The firm also integrates protocols across the , from component sourcing through end-of-life management, prioritizing hardware integrity amid global dependencies. This approach supports rapid integration of processors from partners like , with reports of shipping over 100,000 AI GPUs in 2024 leveraging diversified logistics.

Corporate Governance

Leadership and Board Composition

Charles Liang has served as founder, president, chief executive officer, and chairman of the board of Super Micro Computer, Inc. (Supermicro) since its inception on September 1, 1993. Prior to Supermicro, Liang held engineering roles at Computer Inc., Chips & Technologies, Inc., and Suntek Information International Group, and he holds an M.S. in from the . The executive leadership team features several long-tenured members alongside operational specialists. David E. Weigand serves as senior , , , and chief compliance officer. Chiu-Chu Sara Liu, Liang's wife and co-founder, holds the position of senior . Yih-Shyan Liaw (also known as Wally Liaw), a founding member, is senior of business development and a director. Additional key executives include George Kao as senior of operations and Don Clegg as senior of worldwide sales. In 2025, Liang's total compensation was $442,000, comprising primarily non-salary elements. Supermicro's emphasizes insider continuity with limited oversight. As of mid-2025, members include Chairman Charles Liang, Sara Liu, Yih-Shyan Liaw, Robert Blair, and Judy L. Lin. Scott Angel, an with over 37 years in audit and assurance at , joined on March 31, 2025. The board's committee structure assigns Tally Liu, Robert Blair, and Scott Angel to the , reflecting a mix of internal family-linked directors and external financial expertise. Neither Charles Liang nor Sara Liu serves on the boards of affiliated entities like Ablecom Technology, Inc., despite familial ties such as Steve Liang (Charles's brother) leading Ablecom. This composition has drawn scrutiny in regulatory filings for potential conflicts, though the company maintains separation in operations.

Financial Performance and Metrics

Super Micro Computer reported revenue of $21.97 billion for fiscal year 2025, ending June 30, 2025, marking a 46.6% increase from $14.99 billion in fiscal year 2024, fueled by surging demand for AI-optimized servers and rack-scale systems. This growth followed a 110.4% year-over-year revenue surge in fiscal year 2024, reflecting the company's expansion amid hyperscale data center builds. Net income for fiscal year 2025 totaled $1.05 billion, down 9.0% from $1.15 billion in fiscal year 2024, with diluted at $1.68 compared to $1.92. Profit margins compressed to 4.8% from 7.7% year-over-year, attributed to higher operating expenses, including costs rising to support product innovation, and gross margins averaging around 11% amid component cost fluctuations and scaling production. Trailing twelve-month stood at 6.57% as of October 2025, indicating moderate efficiency in asset utilization for generating earnings. In the fourth quarter of fiscal year 2025, revenue reached $5.76 billion, up from $5.31 billion in the prior quarter, with of $195 million. For the first quarter of fiscal year 2026, ending September 30, 2025, preliminary revenue came in at $5.0 billion, falling short of the company's prior guidance of $6.0–$7.0 billion due to delays in customer project deliveries and constraints. Despite the shortfall, management reiterated full-year fiscal 2026 revenue guidance of at least $33 billion, citing a $12 billion design-win pipeline and sustained AI infrastructure demand.
Fiscal Year Ending June 30Revenue ($B)YoY Growth (%)Net Income ($B)Profit Margin (%)
202414.99110.41.157.7
202521.9746.61.054.8
The table above summarizes key annual metrics, highlighting decelerating growth and margin pressure post the explosive fiscal 2024 expansion. Cash flow from operations supported inventory buildup for AI orders, though free cash flow turned negative in recent periods amid capital expenditures for manufacturing capacity. Overall, financial performance underscores Supermicro's positioning in high-growth computing sectors, tempered by execution risks in scaling amid volatile component sourcing.

Controversies

Alleged Hardware Tampering

In October 2018, Bloomberg Businessweek published an investigative report alleging that operatives linked to the Chinese government had compromised Super Micro Computer Inc. (Supermicro) hardware by implanting minuscule microchips, roughly the size of a grain of rice, onto server motherboards manufactured by the company. The article claimed these implants, added during the manufacturing process in China, enabled remote access and data exfiltration, affecting high-profile U.S. customers including Apple, Amazon Web Services, and elements of the U.S. Department of Defense. Bloomberg cited 17 anonymous sources, including current and former employees from affected companies and intelligence officials, who purportedly confirmed the hardware modifications and subsequent network intrusions. Supermicro immediately denied the allegations, stating it had found no malicious hardware and had not been notified by customers or authorities of any such discoveries. Apple and Amazon also issued strong rebuttals; Apple confirmed it had severed ties with Supermicro as a supplier in 2016 due to unrelated quality issues but emphasized no evidence of tampering was ever identified in its investigations. Independent technical analyses, such as those by hardware experts at ServeTheHome, deemed the reported chip insertion method implausible given Supermicro's manufacturing workflows and the physical constraints of server assembly lines, which involve rigorous component scanning and would likely detect unauthorized additions. U.S. government officials expressed skepticism; FBI Director Christopher Wray advised caution regarding the story, noting in October 2018 that while risks from were real, specifics should be verified carefully. No public forensic evidence, such as photographic or laboratory confirmation of the alleged chips, was presented by Bloomberg, and third-party security firms hired by Supermicro reported no findings of malicious hardware. A subsequent 2021 Bloomberg follow-up article reiterated claims of ongoing U.S. investigations into Supermicro equipment revealing added components but provided no new verifiable proof, prompting criticism for relying on unproduced intelligence without company notification or public disclosure. As of 2025, no confirmed instances of physical hardware tampering in Supermicro products have been publicly substantiated, with the allegations remaining unproven and disputed by primary stakeholders. The episode highlighted broader concerns over vulnerabilities in electronics manufacturing, particularly dependencies on facilities in , but did not result in regulatory actions or bans specifically targeting Supermicro hardware. Recent disclosures involve -level issues in Supermicro's Baseboard Management Controllers (BMCs), such as vulnerabilities patched in 2025 (e.g., CVE-2025-7937 and CVE-2025-6198) that could enable unauthorized updates, but these pertain to software validation flaws rather than physical hardware alterations.

Accounting Practices and Regulatory Challenges

In 2020, the U.S. Securities and Exchange Commission (SEC) charged Super Micro Computer, Inc. and its former , David Weigand, with widespread accounting violations involving improper exceeding $200 million between fiscal years 2015 and 2017. The SEC alleged that the company prematurely recognized revenue on undelivered products, failed to disclose related-party transactions, and maintained inadequate internal controls, leading to a settlement where Super Micro paid a $17.5 million without admitting or denying the findings. These issues stemmed from earlier scrutiny in 2018, when the company's prior auditor, , resigned, citing an inability to rely on management's representations regarding completeness of information, which delayed SEC filings and prompted the initial investigation. More recently, in August 2024, short-seller Hindenburg Research published a report accusing Super Micro of ongoing accounting manipulation, including improper revenue recognition through bill-and-hold schemes and self-dealing transactions with entities linked to the company's founder, Charles Liang. Hindenburg, known for activist short positions, claimed these practices inflated revenue figures amid the company's AI server boom, though Super Micro denied the allegations and highlighted the report's potential conflicts as a short seller. In response, Super Micro's audit committee commissioned an independent special committee review, which concluded in December 2024 that there was no evidence of misconduct in accounting practices or audit committee failures, attributing prior concerns to misunderstandings rather than intentional wrongdoing. Regulatory pressures intensified in October 2024 when (EY), Super Micro's auditor since 2020, abruptly resigned, stating it was unwilling to be associated with the financial statements prepared by management due to recent information leading to a lack of reliance on management's representations, alongside material concerns over the company's governance, transparency, and internal controls that undermined EY's ability to issue an unqualified opinion. EY had flagged these issues in July 2024 communications, including doubts about management's integrity in financial reporting. The resignation triggered a sharp stock decline and delisting warnings for delayed filings, though Super Micro later appointed BDO USA as interim auditor, filed the delinquent reports by the extended deadline of February 25, 2025, thereby avoiding delisting, and regained compliance without requiring restatements of prior filings. However, the U.S. Department of Justice (DOJ) and SEC issued subpoenas in early 2025 for documents related to these accounting matters, signaling continued federal probes. In parallel, multiple securities class action lawsuits were filed starting in late 2024 in the U.S. District Court for the Northern District of California, alleging that Super Micro and certain executives violated federal securities laws by making misleading statements regarding accounting practices and governance, particularly in the wake of the Hindenburg report and auditor resignation. These cases, involving claims of investor losses from undisclosed risks, were consolidated, with a lead plaintiff appointed in July 2025, and remain ongoing. A former employee whistleblower, fired in 2024, has alleged retaliation for raising irregularities, including unfulfilled customer orders booked as sales, claims that Super Micro contests as baseless. As of June 30, 2025, the company disclosed ineffective internal controls over financial reporting due to material weaknesses, contributing to elevated audit risks and fees despite the special committee's clearance. These episodes reflect persistent challenges in Super Micro's accounting transparency, exacerbated by rapid growth in demands, though no formal regulatory findings of have emerged post-2020 settlement.

Market Position and Future Outlook

Strategic Partnerships and Customer Base

Supermicro's customer base encompasses major hyperscalers, cloud service providers, and enterprises focused on AI, data centers, and . Key clients include , , Amazon Web Services (AWS), Google Cloud, and , which have engaged Supermicro for custom server deployments supporting large-scale AI infrastructure and cloud operations. The company has supplied over 30,000 MicroBlade servers to an unnamed Fortune 100 firm for a high-efficiency achieving a (PUE) of 1.06, demonstrating its role in energy-optimized hyperscale environments. Additionally, selected Supermicro's GPU systems for one of Japan's largest supercomputers dedicated to AI research. Strategic partnerships bolster Supermicro's ecosystem, particularly in AI and . Collaborations with semiconductor leaders include for processor integrations, for GPU-accelerated systems like the Blackwell platform, and for EPYC-based servers, enabling rapid deployment of AI training and inference solutions. In October 2024, Supermicro and announced a long-term to develop green AI computing technologies and liquid-cooled solutions, expanded in April 2025 to support secure generative AI applications. Further alliances target networking and storage integration. On September 8, 2025, partnered with Supermicro to deliver AI-optimized networking solutions, combining Supermicro's 800G Ethernet switching with 's SR for hyperscalers and cloud providers. In October 2025, Vantara collaborated with Supermicro to merge AI compute platforms with unified storage for enterprise AI workloads. Other notable ties include Ericsson's June 2025 agreement for 5G-enabled edge AI bundles and Rakuten Symphony for telco-edge solutions. These partnerships emphasize Supermicro's focus on modular, scalable systems amid surging demand for AI .

Competitive Landscape and Industry Impact

Supermicro competes in the highly fragmented server and hardware market against established players including , (HPE), , Cisco Systems, and . These competitors offer integrated systems with varying emphases on enterprise support, proprietary software ecosystems, and global service networks. In the broader x86 server market, Dell held a leading position through 2024, while Supermicro captured a 6% global share at the year's start, rising to tie for first in Q4 2024 with 6.5% revenue share per IDC data, reflecting surging demand for AI-optimized systems. Super Micro Computer holds an important market share in AI training and inference servers, benefiting from AI data center construction trends through its deep cooperation with NVIDIA to provide specialized hardware solutions. Within the AI server segment, which grew rapidly amid generative AI adoption, Supermicro commanded approximately 9% market share in 2024, behind Dell's 20%, HPE's 15%, Inspur's 12%, and Lenovo's 11%, according to ABI Research. Its share in AI servers dipped slightly to 8.3% from 11% year-over-year, amid intensifying competition from original design manufacturers (ODMs) like Quanta and Inventec, which supply hyperscalers with cost-optimized, custom builds. Supermicro's competitive edge in the AI server market stems from rapid customization through its modular Data Center Building Block Solutions (DCBBS), advanced direct liquid cooling (DLC) critical for dense racks with power densities exceeding 100 kW, reducing energy costs by up to 40%, and its long-standing partnership with providing priority chip allocations and enabling quick scaling of platforms like Vera Rubin. This facilitates faster time-to-market—typically 2 to 6 months ahead of rivals—enabled by Silicon Valley proximity to chip suppliers like and , supporting integration of new processors and GPUs into flexible architectures. This agility supports highly customizable, high-density servers tailored for AI training, inference, and edge deployments, contrasting with competitors' more standardized offerings that prioritize bundled services over flexibility. However, rivals are catching up in cooling technologies and AI infrastructure, with risks of margin compression and pricing wars from competitors like Dell, HPE, Lenovo, and ODMs such as Quanta. Supermicro has shaped industry trends by pioneering scalable AI infrastructure, with AI-related systems accounting for over 70% of its Q4 FY2025 revenue, fueling advancements in cloud-native, edge AI, and 5G telco applications. Its first-to-market solutions, such as GPU-dense racks and MicroBlade systems powered by processors, have accelerated hyperscaler deployments and enterprise adoption of distributed inference, contributing to the AI server's projected 55% growth to $252 billion in 2025. By emphasizing sustainability through parks and efficient cooling, Supermicro influences data center operators to prioritize over initial hardware expenses, though its impact is tempered by reliance on third-party components amid volatilities. Analysts project continued strong revenue and earnings growth for Supermicro due to sustained AI server demand, with consensus estimates suggesting revenue could exceed $30-40 billion annually by FY2026 in optimistic scenarios, subject to market conditions and execution.
VendorAI Server Market Share (2024)
20%
HPE15%
12%
11%
Supermicro9%

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