Supermicro
{{Short description|American supplier of servers and other information technology products}}
{{Use mdy dates|date=October 2018}}
{{Infobox company
| name = Super Micro Computer, Inc.
| logo = Super Micro Computer Logo.svg
| logo_upright = 1.0
| logo_caption =
| image = Supermicro Green Computing Park.jpg
| image_upright = 1.15
| image_alt =
| image_caption = Supermicro Green Computing Park
| trade_name = Supermicro
| native_name =
| native_name_lang =
| romanized_name =
| former_name =
| type = Public
| traded_as = {{ubl|{{NASDAQ|SMCI}}|S&P 500 component}}
| ISIN =
| industry = Information technology
| founded = {{Start date and age|1993}}
| founders = {{Unbulleted list|Charles Liang|Sara Liu}}
| fate =
| hq_location_city = San Jose, California
| hq_location_country = U.S.
| num_locations = 11
| key_people = {{Unbulleted list
| Charles Liang (chairman, president and CEO)
| David Weigand (CFO)
| Don Clegg (SVP of Worldwide Sales)
| George Kao (SVP of Operations)
}}
| products = {{Unbulleted list|BigTwin|Ultra|SuperBlade|Rack servers|GPU servers|5G/Telco}}
| revenue = {{Increase}} {{US$|14.99 billion|link=yes}} (2024)
| operating_income = {{Increase}} {{US$|1.211 billion}} (2024)
| net_income = {{Increase}} {{US$|1.153 billion}} (2024)
| assets = {{Increase}} {{US$|9.826 billion}} (2024)
| equity = {{Increase}} {{US$|5.417 billion}} (2024)
| num_employees = 5,684 (2024)
| footnotes = Financials {{as of|2024|06|30|lc=y|df=US}}.{{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/0001375365/000137536525000004/smci-20240630.htm |title=Super Micro Computer, Inc. 2024 Annual Report (Form 10-K) |date=February 25, 2025 |publisher=U.S. Securities and Exchange Commission}}
| website = {{url|https://www.supermicro.com/|supermicro.com}}
}}
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,{{cite web |last1=Seetharaman |first1=Deepa |last2=Dotan |first2=Tom |title=The AI Boom Runs on Chips, but It Can't Get Enough |url=https://www.wsj.com/articles/the-ai-boom-runs-on-chips-but-it-cant-get-enough-9f76f554?page=1 |publisher=The Wall Street Journal |date=May 29, 2023}} while also providing server management software, and storage systems for various markets, including enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing.{{cite news|last1=Vance|first1=Ashlee|author-link=Ashlee Vance|title=Super Micro Computer: A One-Man, or at Least One-Family, Powerhouse|url=https://www.nytimes.com/2008/11/24/technology/business-computing/24micro.html|access-date=September 2, 2017|work=New York Times|date=November 23, 2008}}{{cite news|last1=Bailey|first1=Brandon|title=Charles Liang, founder, Super Micro Computer|url=http://www.mercurynews.com/2010/10/15/mercury-news-interview-charles-liang-founder-super-micro-computer/|access-date=September 2, 2017|work=Mercury News|date=October 15, 2010}}{{cite news|last1=Morgan|first1=Timothy Prickett|title=Surfing On Tech Waves With Supermicro|url=https://www.nextplatform.com/2016/09/12/surfing-tech-waves-supermicro/|access-date=September 2, 2017|work=The Next Platform|date=September 12, 2017}}{{cite web|url=https://www.anandtech.com/show/15783/the-supermicro-h11dsi-motherboard-review|title=The Supermicro H11DSi Motherboard Mini-Review: The Sole Dual EPYC Solution|last=Cutress |first=Dr. Ian|date=2020-05-13|access-date=2021-09-06}}{{Cite web |last=Cole |first=Arthur |title=Advice for deploying AI in production environments |date=May 2, 2022 |url=https://venturebeat.com/2022/05/02/advice-for-deploying-ai-in-production-environments/}}{{Cite web |last=Sharma |first=Ray |title=Supermicro Intros Multi-Node Solutions for 5G, IoT, and Edge Application |url=https://www.thefastmode.com/technology-solutions/23083-supermicro-intros-multi-node-solutions-for-5g-iot-and-edge-applications}} 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.
== History ==
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. 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.{{cite web |last1=Much |first1=Marilyn |title=Super Micro Computer's CEO Made Money Grow On Trees |url=https://www.investors.com/news/management/leaders-and-success/super-micro-computer-meet-the-ceo-who-made-money-grow-on-trees/ |website=www.investors.com |date=March 30, 2023}}
= Manufacturing expansion, local and international =
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. In 1998, Supermicro opened a subsidiary in the Netherlands.{{Cite web |last=Richaud |first=Nicolas |date=5 October 2018 |title=Qui est Supermicro, l'entreprise au coeur de l'affaire des puces espionnes chinoises ? |work=Les Echos |url=https://www.lesechos.fr/tech-medias/hightech/qui-est-supermicro-lentreprise-au-coeur-de-laffaire-des-puces-espionnes-chinoises-141032}}
In May 2010, Supermicro further expanded into Europe with the opening of its system integration logistics center in the Netherlands.{{cite web |last1=Black |first1=Doug |title=Supermicro expands into Europe and Asia |date=June 2010 |url=https://insidehpc.com/2010/05/supermicro-expands-into-europe-and-asia/}} Two years later, the company opened its Taiwan Science and Technology Park, totaling $99 million in construction costs.{{Cite web |last=Hsu |first=Aaron |date=6 January 2012 |title=Super Micro unveils science park in Taiwan |url=https://taiwantoday.tw/news.php?unit=6&post=10700}}
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.{{cite web|title=History of 750 Ridder Park Drive|work=750 Ridder Park Drive|publisher=History San José|url=http://mercurynews.historysanjose.org/history-of-750-ridder-park-drive/|access-date=June 20, 2018|archive-date=October 1, 2018|archive-url=https://web.archive.org/web/20181001120724/http://mercurynews.historysanjose.org/history-of-750-ridder-park-drive/|url-status=dead}}{{cite web|title=The Loggia Pendant|work=750 Ridder Park Drive|publisher=History San José|access-date=June 18, 2018|url=http://mercurynews.historysanjose.org/the-loggia-pendant/|archive-date=June 18, 2018|archive-url=https://web.archive.org/web/20180618125804/http://mercurynews.historysanjose.org/the-loggia-pendant/|url-status=dead}}{{cite news|title=Pizarro: A bittersweet farewell to the old Mercury News building|first=Sal|last=Pizarro|work=San Jose Mercury News|publisher=Bay Area News Group|date=September 26, 2014|url=http://www.mercurynews.com/News/ci_26615094/Pizarro:-A-bittersweet-farewell-to-the-old-Mercury-News-building}} In 2017, the company completed a new 182,000 square-foot manufacturing building on the campus, which was designed to meet LEED gold certification.{{Cite news|url=https://businessfacilities.com/2017/03/supermicro-expands-silicon-valley-manufacturing-hq/|title=Supermicro Expands Silicon Valley Manufacturing HQ|last=Staff|first=BF|date=March 8, 2017|work=Business Facilities|access-date=October 12, 2017|language=en-US}}{{Cite web|url=https://www.bizjournals.com/sanjose/news/2017/03/08/super-micro-computer-opens-182-000-square-foot.html|title=Super Micro opens 182000 square foot expansion near San Jose HQ|website=Silicon Valley Business Journal|access-date=2018-10-05}} 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.{{cite web |last1=Avalos |first1=George |title=Super Micro expands north San Jose campus with new manufacturing building |date=September 17, 2021 |url=https://www.mercurynews.com/2021/09/17/super-micro-expands-north-san-jose-campus-new-tech-manufacturing-building/}}
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.{{cite web |last1=Hamilton |first1=Katherine |title=Super Micro to Build Third California Campus |url=https://www.wsj.com/tech/ai/super-micro-to-build-third-california-campus-fe1f8d5b |publisher=Wall Street Journal |date=February 28, 2025}}
Products
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.{{cite web |last1=Johnston |first1=Don |title=LLNL develops advanced technology testbed |url=https://www.llnl.gov/article/32676/llnl-develops-advanced-technology-testbed |publisher=Lawrence Livermore National Laboratory |date=November 21, 2008}}
In 2012, Supermicro debuted its new 2U and 4U/Tower platforms.{{cite web |last1=Rath |first1=John |title=Supermicro Debuts Hyper-Speed Servers |url=https://www.datacenterknowledge.com/archives/2012/12/05/supermicro-debuts-hyper-speed-servers |date=December 5, 2012}}
In 2016, Supermicro sent 30,000 MicroBlade servers to a Silicon Valley data center with a claimed power usage effectiveness (PUE) of 1.06.{{cite web |last1=Moss |first1=Sebastian |title=Supermicro puts 30,000+ blades in [Intel's] PUE 1.06 data center |date=February 7, 2017 |url=https://www.datacenterdynamics.com/en/news/supermicro-puts-30000-blades-in-intels-pue-106-data-center/}} 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.{{cite web |last1=Smolaks |first1=Max |title=Intel builds in-house data center with PUE of 1.06 |date=November 10, 2015 |url=https://www.datacenterdynamics.com/en/news/intel-builds-in-house-data-center-with-pue-of-106/}}
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.{{cite web |last1=Trader |first1=Tiffany |title=AMD Launches Three New High-Frequency Epyc SKUs Aimed at Commercial HPC |url=https://www.hpcwire.com/2020/04/14/amd-targets-commercial-hpc-with-high-frequency-epyc-7f-series-skus/ |website=www.hpcwire.com |date=April 14, 2020}}
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.{{cite web |last1=Coughlin |first1=Tom |title=Intel's 3rd Generation Xeon Processor Storage And Memory |url=https://www.forbes.com/sites/tomcoughlin/2021/04/06/intels-3rd-generation-xeon-processor-storage-and-memory/ |work=Forbes |date=April 6, 2021}}
In 2023, Supermicro partnered with Rakuten Symphony on high-performing Open RAN technologies and storage systems for operators of cloud-based mobile services.{{cite press release|url=https://www.prnewswire.com/news-releases/supermicro-and-rakuten-symphony-extend-their-collaboration-and-offer-complete-5g-telco-and-edge-solutions-for-cloud-based-open-ran-mobile-networks-301759130.html|title=Supermicro and Rakuten Symphony Extend Their Collaboration and Offer Complete 5G, Telco, and Edge Solutions For Cloud Based Open RAN Mobile Networks|publisher=PR Newswire}} 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.{{cite web |last1=Thomas |first1=Eve |title=Supermicro addresses technology industry focus on ESG policy |url=https://www.verdict.co.uk/supermicro-addresses-technology-industry-focus-on-esg-policy/ |website=www.verdict.co.uk |date=June 1, 2023}} In June 2023, Supermicro saw increased demand for its large language model optimized AI systems, featuring NVIDIA chips.{{cite web |last1=Kim |first1=Tae |title=AI Will Be Bigger Than Industrial Revolution, Says Leading AI Executive|url=https://webreprints.djreprints.com/2430736.html |website=Barron's}}
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.{{cite web |last1=Larsen |first1=Jen |title=Nvidia gets the glory, but Supermicro is the unsung hero of the AI revolution |url=https://venturebeat.com/ai/nvidia-gets-the-glory-but-supermicro-is-the-unsung-hero-of-the-ai-revolution-learn-more-at-vb-transform/ |publisher=VentureBeat |date=June 24, 2024}} 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.{{cite web |last1=Gerut |first1=Amanda |title=Super Micro CEO Charles Liang said he teamed up with Elon Musk's xAI to build the Colossus data center in just 122 days |url=https://fortune.com/2025/03/14/super-micro-ceo-charles-liang-elon-musk-xai-grok-nvidia-server-chips/ |publisher=Fortune |date=March 14, 2025}} Supermicro also supplied servers for Tesla's Gigafactory Texas.{{cite web |last1=Grimm |first1=Dallin |title=Elon Musk's liquid-cooled 'Gigafactory' AI data centers get a plug from Supermicro CEO — Tesla and xAI's new supercomputers will have 350,000 Nvidia GPUs, both will be online within months |url=https://www.tomshardware.com/tech-industry/artificial-intelligence/elon-musks-liquid-cooled-gigafactory-data-centers-get-a-plug-from-supermicro-ceo-tesla-and-xais-new-supercomputers-will-have-350000-nvidia-gpus-both-will-be-online-within-months |publisher=Tom's Hardware |date=July 6, 2024}}
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.{{Cite web |last=Chung |first=Jake |date=2024-12-27 |title=Super Micro to build Green Computing center in Taiwan |url=https://www.taipeitimes.com/News/taiwan/archives/2024/12/27/2003829207 |access-date=2025-01-02 |website=Taipei Times}}
Corporate affairs
=Board of directors=
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.{{cite web |title=SuperMicro Board of Directors |url=https://ir.supermicro.com/governance/board-of-directors/default.aspx}} 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.{{cite web |last1=Gerut |first1=Amanda |title=Super Micro short sellers have built a position worth nearly $4 billion—and the trade recently turned ‘very profitable,’ finance expert says |url=https://fortune.com/2025/04/01/supermicro-general-counsel-audit-accounting-investigation-short-seller-stock-profit-ai/ |website=Fortune.com |date=April 1, 2025}} 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.
=Financials=
On March 8, 2007, Supermicro raised $64 million in an initial public offering, selling 8 million shares at $8 a share.{{cite news |title=Super Micro Computers IPO raises $64 mln, below range |url=https://www.reuters.com/article/supermicro-ipo/super-micro-computers-ipo-raises-64-mln-below-range-idUSN2834044320070328 |website=Reuters|date=March 28, 2007 }} Supermicro's stock trades under the ticker symbol SMCI{{cite web |url=https://www.nasdaq.com/market-activity/stocks/smci |title= NASDAQ SMCI}} on the Nasdaq exchange.
In 2009, Supermicro sold about $720 million worth of computer servers and related products and employed almost 1,100 people.{{cite web |title=Mercury News interview: Charles Liang, founder, Super Micro Computer |url=https://www.mercurynews.com/2010/10/15/mercury-news-interview-charles-liang-founder-super-micro-computer/ |date=October 15, 2010}} 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.{{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1375365/000137536523000036/smci-20230630.htm |title=Super Micro Computer, Inc. 2023 Annual Report (Form 10-K) |date=August 28, 2023 |publisher=U.S. Securities and Exchange Commission}}
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.{{Cite web |last=Koller |first=Alex |date=4 March 2024 |title=Super Micro pops more than 18% after S&P 500 selection |url=https://www.cnbc.com/2024/03/04/super-micro-pops-15percent-after-sp-500-selection.html |access-date=10 March 2024 |website=CNBC}}{{cite news |last1=Fitch |first1=Asa |last2=Glickman |first2=Ben |title=Meet the Tech Company That Had a Better Year Than Nvidia |url=https://www.wsj.com/tech/ai/super-micro-computer-company-profile-d93a41da |access-date=17 March 2024 |work=WSJ |publisher=Dow Jones |date=17 March 2024}} On July 22, 2024, Supermicro became a Nasdaq-100 company, replacing Walgreens Boots Alliance in the index.{{cite news |title=Super Micro Computer Inc. to Join the Nasdaq-100 Index® Beginning July 22, 2024 |url=https://finance.yahoo.com/news/super-micro-computer-inc-join-000000353.html}} Supermicro was removed from the index in December 2024.{{cite web |last1=Novet |first1=Jordan |title=Super Micro slides 8% after stock is dropped from Nasdaq 100 |url=https://www.cnbc.com/2024/12/16/super-micro-slides-7percent-after-stock-is-dropped-from-nasdaq-100.html |publisher=CNBC |date=December 16, 2024}}
Controversy
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.{{cite news |title=Super Micro Pleads Guilty in Iran Export Case |url=https://www.wsj.com/articles/SB115872674435068656 |work=Wall Street Journal}} 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.
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.{{Cite web|title=Xinjiang Production and Construction Corps Public Security "Internet + Government Service" Platform Project Server Equipment Procurement|url=https://zhaobiao.qixin.com/61838a9e7a8ecee0027409452021|access-date=2021-12-12|website=Qixin.com}}{{Cite web|last1=Eikelenboom|first1=Siem|last2=Bruijn|first2=Annebelle de|date=2021-09-08|title=Omstreden studies van Erasmus MC-onderzoeker met dna Oeigoeren worden teruggetrokken|url=https://www.ftm.nl/artikelen/omstreden-studies-erasmus-dna-oeigoeren-ingetrokken|access-date=2021-12-12|website=Follow the Money|language=nl-NL}}{{Cite web|title=Technologie-overdracht aan China|url=https://www.vpro.nl/argos/lees/onderwerpen/artikelen/2021/technologie-overdracht-aan-china.html|access-date=2021-12-12|website=Argos|date=December 10, 2021 |language=nl}}{{Cite web|title=Addition of Certain Entities to the Entity List; Revision of Existing Entries on the Entity List|url=https://www.federalregister.gov/documents/2020/06/05/2020-10868/addition-of-certain-entities-to-the-entity-list-revision-of-existing-entries-on-the-entity-list|access-date=2021-12-12|website=Federal Register|date=June 5, 2020 }}
= Server tampering allegation =
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.{{cite news |url=https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies |title=The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies |first1=Jordan |last1=Robertson |first2=Michael |last2=Riley |work=Bloomberg Businessweek |date=October 4, 2018 |archive-url=https://web.archive.org/web/20181004172410/https://www.bloomberg.com/news/features/2018-10-04/the-big-hack-how-china-used-a-tiny-chip-to-infiltrate-america-s-top-companies |archive-date=October 4, 2018}}{{Cite news|url=https://www.zdnet.com/article/how-one-tiny-chinese-chip-was-used-to-infiltrate-apple-amazon-us-contractors-report/|title=Apple, Amazon deny claims Chinese spies implanted backdoor chips in company hardware: report |last=Osborne|first=Charlie|work=ZDNet|access-date=October 4, 2018|language=en}}{{Cite news|url=https://www.theverge.com/2018/10/4/17935868/chinese-spies-microchip-hack-servers-apple-amazon-supermicro|title=Chinese spies reportedly inserted microchips into servers used by Apple, Amazon, and others|work=The Verge|access-date=October 4, 2018}} Supermicro denied the report, stating that they had not been contacted by government agencies and were unaware of any investigation.{{cite news |title=The Big Hack: Statements From Amazon, Apple, Supermicro, and the Chinese Government |url=https://www.bloomberg.com/news/articles/2018-10-04/the-big-hack-amazon-apple-supermicro-and-beijing-respond |access-date=October 4, 2018 |work=Bloomberg News |date=October 4, 2018}}{{Cite news|url=https://arstechnica.com/tech-policy/2018/10/bloomberg-stands-by-chinese-chip-story-as-apple-amazon-ratchet-up-denials/|title=Bloomberg stands by Chinese chip story as Apple, Amazon ratchet up denials|work=Ars Technica|access-date=2018-10-07|language=en-us}}{{Cite news|url=https://www.zdnet.com/article/security-researcher-cited-in-supermicro-chip-hack-investigation-casts-doubt-on-story/|title=Security researcher source in Supermicro chip hack report casts doubt on story|last=Osborne|first=Charlie|work=ZDNet|access-date=2018-10-09|language=en}}{{Cite web|url=https://www.cnbc.com/2018/10/10/fbi-director-wray-on-super-micro-servers-be-careful-what-you-read.html|title=FBI director on whether Apple and Amazon servers had Chinese spy chips: 'Be careful what you read'|website=CNBC|date=October 10, 2018}} The report was also disputed by sources and companies who were named therein.
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.{{Cite news|url=https://www.bloomberg.com/news/articles/2018-10-09/new-evidence-of-hacked-supermicro-hardware-found-in-u-s-telecom|title=New evidence of hacked Supermicro hardware found in U.S. telecom|newspaper=Bloomberg.com|date=October 9, 2018|access-date=2018-10-09}}{{Cite news|url=https://techcrunch.com/2018/10/09/a-new-twist-in-bloombergs-spy-chip-report-implicates-u-s-telecom/|title=A new twist in Bloomberg's 'spy chip' report implicates U.S. telecom|work=TechCrunch|access-date=2018-10-09|language=en-US}}{{cite news |last1=Kennedy |first1=Patrick |title=Yossi Appleboum on How Bloomberg is Positioning His Research Against Supermicro |url=https://www.servethehome.com/yossi-appleboum-disagrees-bloomberg-is-positioning-his-research-against-supermicro/ |access-date=11 October 2018 |publisher=STH |date=9 October 2018}} In response to the article, Supermicro announced that it would review its motherboards for potential spy chips,{{Cite web |url=https://www.scmp.com/news/world/united-states-canada/article/2169737/supermicro-tells-customers-it-looking-chinese-spy |title=Supermicro says it's hunting for Chinese spy chips on motherboards |date=2018-10-23 |website=South China Morning Post |language=en |access-date=2018-10-23}} 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.{{Cite news|url=https://www.wsj.com/articles/super-micro-computer-denies-malicious-chip-report-1540213555|title=Super Micro Computer Denies Malicious Chip Report, Says It Is Conducting Review Anyway|last=Prang|first=Allison|date=2018-10-22|work=Wall Street Journal|access-date=2018-10-24|language=en-US|issn=0099-9660}}
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.{{Cite news|last1=Robertson|first1=Jordan|last2=Riley|first2=Michael|date=12 February 2021|title=The Long Hack: How China Exploited a U.S. Tech Supplier|language=en|work=Bloomberg Businessweek|url=https://www.bloomberg.com/features/2021-supermicro/|access-date=2021-02-17}}
= Accounting practices =
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.{{Cite news |last=Tokar |first=Dylan |date=August 26, 2020 |title=Supermicro Fined $17.5 Million Over Accounting Violations |url=https://www.wsj.com/articles/supermicro-fined-17-5-million-over-accounting-violations-11598481716 |work=The Wall Street Journal |archive-url=https://archive.today/20200908121209/https://www.wsj.com/articles/supermicro-fined-17-5-million-over-accounting-violations-11598481716 |archive-date=September 8, 2020 |url-status=live |url-access=subscription}}{{Cite web |last1=Gavin |first1=William |last2=Fabbro |first2=Rocio |date=August 28, 2024 |title=Super Micro Computer stock tanks 22% after a short-seller's scathing report |url=https://qz.com/super-micro-computer-stock-fall-filing-delay-hindenburg-1851634005 |website=Quartz |archive-url=https://web.archive.org/web/20240905232515/https://qz.com/super-micro-computer-stock-fall-filing-delay-hindenburg-1851634005 |archive-date=September 5, 2024 |url-status=live}}
==2024 Hindenburg Research short-seller report==
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, 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."{{cite news |url=https://www.washingtonpost.com/opinions/2021/12/21/how-western-tech-companies-are-helping-russia-censor-internet/ |title=How Western tech companies are helping Russia censor the Internet |date=2021-12-22 |orig-date=2021-12-21 |author1=Andrei Soldatov |author2=Irina Borogan |newspaper=The Washington Post |place=Washington, D.C. |issn=0190-8286 |oclc=1330888409}}{{WaPoCheckDates}} 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.{{Cite web |last=Daniel |first=Will |date=August 28, 2024 |title=Wall Street's AI darling Super Micro postponed earnings while under short seller's microscope |url=https://fortune.com/2024/08/28/super-micro-wall-street-ai-earnings-short-seller-hindenburg/ |work=Fortune |archive-url=https://archive.today/20240828193533/https://fortune.com/2024/08/28/super-micro-wall-street-ai-earnings-short-seller-hindenburg/ |archive-date=August 28, 2024 |url-status=live |url-access=subscription}} The next day, Supermicro said it would delay the filing of its annual report.{{Cite news |last=Seal |first=Dean |date=August 28, 2024 |title=Super Micro Computer Selloff Deepens on Delayed 10-K Filing |url=https://www.wsj.com/finance/stocks/super-micro-computer-selloff-deepens-on-delayed-10-k-filing-3b685de4 |work=The Wall Street Journal |archive-url=https://archive.today/20240830224750/https://www.wsj.com/finance/stocks/super-micro-computer-selloff-deepens-on-delayed-10-k-filing-3b685de4 |archive-date=August 30, 2024 |url-status=live |url-access=subscription}}
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.{{Cite news |last1=Weil |first1=Jonathan |last2=Foldy |first2=Ben |date=September 26, 2024 |title=Justice Department Probes Server Maker Super Micro Computer |url=https://www.wsj.com/tech/justice-department-probes-server-maker-super-micro-computer-2ca6a4d3 |work=The Wall Street Journal |url-access=subscription |archive-url=https://archive.today/20240927005426/https://www.wsj.com/tech/justice-department-probes-server-maker-super-micro-computer-2ca6a4d3 |archive-date=September 27, 2024 |url-status=live}} Supermicro was subpoenaed by the DOJ and the Securities and Exchange Commission, seeking documents related to the report.{{cite web |last1=Babu |first1=Juby |title=Super Micro to file delayed annual report by February deadline, shares rise |url=https://www.reuters.com/technology/super-micro-file-delayed-annual-report-by-february-deadline-2025-02-11/ |publisher=Reuters |date=February 11, 2025}}
In October 2024, Supermicro's auditors, Ernst & Young resigned after raising significant concerns over the company's internal controls, board independence and accounting practices.{{cite news |last=Goswami |first=Rohan | title=Super Micro shares plunge 33% as auditor resigns after raising concerns months earlier | url=https://www.cnbc.com/2024/10/30/super-micro-auditor-resigns-after-raising-concerns-months-earlier.html |date=October 30, 2024 |publisher=CNBC}} 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.{{Cite news |url=https://apnews.com/article/super-micro-computer-misconduct-review-a2b274184525a7aff5920f049917eb54 |title=Super Micro's shares jump after server maker says review finds no evidence of misconduct |date=December 2, 2024 |publisher=Associated Press}} The board also started searching to replace the CFO.{{cite web |last1=Estrada|first1=Sheryl |title=Super Micro needs a new CFO after an accounting scandal. Who should apply? |url=https://fortune.com/2024/12/04/super-micro-new-cfo-accounting-david-weigand/ |website=Fortune |date=December 4, 2024}} In the next month, Supermicro hired a new auditor, BDO Global.{{cite web |last1=Gerut |first1=Amanda |title=Super Micro just hired a new auditor that might save it from getting the boot from Nasdaq |url=https://fortune.com/2024/11/18/super-micro-auditor-nasdaq-ey-bdo-stock-nvidia/ |website=Fortune |date=18 November 2024}} 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."{{cite web |last1=Subin |first1=Samantha |title=Super Micro Computer shares surge 12% after company files delayed financials by deadline |url=https://www.cnbc.com/2025/02/26/super-micro-computer-surges-20percent-after-filing-delayed-financials.html |publisher=CNBC |date=February 26, 2025}}
References
{{reflist|30em}}
External links
{{Commons category|Super Micro Computer}}
- {{Official website}}
{{Finance links
| name = Super Micro Computer, Inc.
| symbol = SMCI
| reuters = SMCI.O
| bloomberg = SMCI:US
| sec_cik = 1375365
| yahoo = SMCI
| google = SMCI:NASDAQ
}}
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