Liang Jianhou, founder and president of Supermicro, a major AI server manufacturer in the United States, issued an internal letter to employees, emphasizing that the company's annual revenue will strive for $20 billion due to the inexhaustible orders for AI servers, highlighting that the AI market is in full swing.
Supermicro is an important partner of NVIDIA, the overlord of AI chips, and NVIDIA Chairman Jensen Huang has stood up for it in public many times, highlighting the importance attached to Supermicro.
Previously, Taiwan's heavyweight AI giants such as Quanta, Inventec, and Wistron also praised the development of the market, and now Supermicro has joined in voting a highly positive vote for the market outlook, which is more reassuring for the future development of the AI community.
Since the beginning of this year, Supermicro has relied on its expertise in the server field to successfully set off a huge wave of AI with NVIDIA that shocked the world, bringing a steady stream of topics to the technology industry.
Huang not only visits Supermicro privately every time he comes to Taiwan, but also repeatedly mentions that thanks to the cooperation between the two parties, he has been able to achieve his goal of strengthening "computing power" and building generative AI, which shows that Supermicro has an unshakable position in the industry
In an internal letter, Liang pointed out that Supermicro has long been committed to providing systems with optimized power efficiency and natural air and liquid cooling, and looking back at the many things that happened throughout the 2023 fiscal year, there must be many things to celebrate, all of which are due to the persistence and innovation of server technology and the focus on the time of launch of its various product lines.
As the market blows warm, Liang said that Supermicro has seen new business opportunities emerge within the AI, global enterprise, cloud, storage market and 5G telecommunications sectors, and that Supermicro has built strong partnerships with leading CPU, GPU and storage vendors, which will give the company a strong and overwhelming advantage in the face of growing demand for highly integrated rack-scale solutions.
The 2023 fiscal year is also the 30th anniversary of Supermicro's founding, which is a breakthrough year for the company, and even won the championship in many professional fields.
Supermicro's expansion of PNP Total AL and IT solutions is just beginning, and the pace of growth is expected to accelerate again in the future with the provision of more optimized AI infrastructure to existing and emerging markets, coupled with the growing value of software and services, with an estimated annual revenue of $20 billion.
When it comes to the AI market trend, Taiwanese industry leaders praise it in unison. Barry Lin, chairman of Quanta, believes that the market demand for AI computing power continues to grow rapidly, and the new generation of AI servers will gradually enter a period of mass production.
Ye Licheng, chairman of Inventec, said bluntly that there is "no suspense" about the upward trend of AI servers in the next two or three years.
Even Supermicro's third-party manufacturers have benefited, with Huatai taking advantage of the sharp increase in the price of NAND chips, and the orders of major customers Supermicro AI servers continue to heat up, and the performance has skyrocketed simultaneously. The average price (ASP) of AI server products is higher than that of other product lines, and the profit performance is worth looking forward to.
In terms of electronics manufacturing business, Huatai will also plan to expand its solid-state drive (SSD) and server production capacity in line with the increasing demand of customers and market, and its automotive products have also obtained certification.
Youqun, a connector factory, believes that in 2024, with the increase in DDR5 penetration rate and the contribution and growth of micro metal stamping parts, the target performance will increase by double-digit percentage annually and fight for a new high.
The first phase of the Vietnam plant includes injection molding process, automated assembly, etc., which is expected to be opened in the third quarter of next year, and the second phase will double the area compared with the first phase, which will include stamping, electroplating and other processes, and is expected to be opened in the third quarter of 2025.
Since there is no electroplating capability in the same industry, electroplating is the competitive advantage of Vietnamese factories in the future.
PCB factory Primus currently has a monthly production capacity of 800,000 square feet with a monthly production capacity of 800,000 square feet mainly on 16-layer boards and above, targeting Intel's Eagle Stream and AI server related applications, and it is expected that the demand for AI servers and high-end industrial computer applications will continue to grow in the first half of next year.