Supermicro's market share in Korea is only 5%, but we will expand the distribution of direct liquid cooling (DLC) solutions to raise the share to at least 25%.
Charles Liang, Chief Executive Officer (CEO) of Supermicro, said this on the 21st (local time) during a meeting with ChosunBiz in Taipei, Taiwan. Liang, who visited Taiwan to participate in Computex 2025, Asia's largest IT and computing exhibition, expressed his ambition to increase market share in Korea, as Supermicro has proven its competitiveness in the global market with a fourfold increase in sales over the last three years.
Supermicro, headquartered in Silicon Valley, USA, is the number one company in liquid cooling systems, which are differentiated from the air cooling systems that cool data centers by air. The liquid cooling system is a next-generation data center solution that overcomes the drawbacks of existing air cooling systems, which have low energy efficiency and generate high fan noise. Supermicro's sales last year reached $14.99 billion (about 21.5 trillion won), more than double compared to the previous year.
CEO Liang said, "We have already secured over 20% market share in the United States, and this year our goal is to ship more than double the number of server racks compared to last year," and added, "Having already proven low expense, excellent quality, and reliability to many customers, I am confident that Supermicro's competitiveness will work in the Korean market as well." He also noted, "We are steadily securing personnel to respond to the Korean market."
CEO Liang announced that they will accelerate their market strategy in Korea based on the newly released direct liquid cooling (DLC-2) solution and the "data center building block solution (DC BBS)." The "DLC-2" system is a solution that can reduce power consumption by up to 40% by lowering the temperatures of the overall system, including memory and controllers, instead of cooling the central processing unit (CPU) and graphics processing unit (GPU) with water. It also has the advantage of creating a data center as quiet as a library by reducing noise to around 50 decibels (dB). The DC BBS allows customers to manufacture servers in the desired configuration by dividing servers into block forms.
CEO Liang stated, "With the newly launched solution, we can provide customers with better servers," and added, "It usually takes 18 months to 2 years to build a data center, but with our solution, it can be constructed within 6 months, saving time."
He further stated, "Previously, 1,000 tons (t) of cooling capacity was needed for cooling, but with Supermicro's technology, only 100 t is sufficient. This means a 90% reduction in air conditioning-related expense."
CEO Liang dismissed the 'accounting fraud' issue raised last year as fake news. Last year, the activist short-selling investment firm Hindenburg Research claimed to have uncovered "significant accounting risk signals and evidence of undisclosed related-party transactions, and violations of sanctions and export control compliance and customer issues" after investigating Supermicro for three months, leading to the public disclosure of short positions against Supermicro.
In response, Supermicro appointed BDO USA, a U.S. accounting and consulting firm, as a new independent auditor and took a series of actions, including submitting a compliance plan for Nasdaq regulations, stating, "We found no evidence that management or the board engaged in fraud or illegal activities related to accounting issues."
CEO Liang remarked, "It was fake news spread by Hindenburg Research," and added, "Unfortunately, this news caused some delays and setbacks, but our business is very sound, and operations are stable. We are currently recovering rapidly."