Supermicro building a 3 million sqft campus in the USA when their current utilization is only 55%? There’s a piece of the puzzle missing, and I think it’s going to be big!
During the last earnings call on February 11th, Charles reported their current factory utilization rates as:
- USA: 55%
- Taiwan: 60%
- Malaysia: 1%
Their current 1.7 million sqft USA campus, with around 13 buildings, is operating at just over half capacity. Meanwhile, their Taiwan factory also has plenty of room to grow, and their brand-new Malaysia facility is almost completely underutilized. Yet, despite all this, Supermicro is building an even bigger 3 million sqft new campus in the USA?????
Currently generating around $24 billion in yearly revenue, they still have the ability to almost double their production capacity without even expanding. So, why would they need to invest in such a massive expansion when they aren't even close to maxing out what they already have?
They must have something huge coming. This move signals that they know something big is ahead. What do you think? What kind of massive projects could justify such a drastic expansion when their existing capacity is only at ~50%?