Taipei, July 25, 2008 (CENS)--Super Micro Computer Inc., the world`s fourth-largest supplier of servers, is planning to increase orders with its Taiwanese contract suppliers, including Wistron Corporation and Universal Scientific Industry Co. The upcoming orders are expected to bring considerable profits to the Taiwanese suppliers, according to company sources.

Closely working with Intel and Taiwanese contract suppliers to upgrade production efficiency, Super Micro has quickly developed a variety of servers based on IBM, HP, and Dell`s existing specifications for its clients. At the moment, the firm also commands the largest share, at 40%, of the global market for generic servers, trailed by Intel with 35%.

Super Micro noted that servers bear higher gross profits than PCs, and global sales of the former are estimated at 8 million units, with 15-20% sold under generic brands. The firm, attaining shipment of 70,000 servers a month, has posted strong annual revenue growth rates of over 40% for five consecutive years, and is expected to report sales revenue of US$500 million for the last fiscal year.

Super Micro has focused its business operation in the North American market for a long time, with 60% of its total sales generated in the market. However, in light of strong demand for servers in emerging countries of Europe and Asia, the firm will set up local logistic centers in Holland, and either Taiwan or China`s Guangdong.

After becoming a leading supplier in the global market for generic servers, Super Micro has squared off against large-sized international brands as IBM and HP. Optimistic about the sales prospects for blade servers, the firm has poured US$30 million into research and development of the products, and already launched such models in the global market. The firm noted that global sales of blade servers, which feature expandability and energy-saving functions, are expected to grow between 30% and 40% a year in the future.
(by Steve Chuang)