Charles Liang discusses Supermicro’s journey to tech success

TAIPEI (Global Views/TVBS News) — Charles Liang (梁見後), originally from Chiayi, might not enjoy the same level of fame in Taiwan as Jensen Huang (黃仁勳) or Lisa Su (蘇姿丰). Yet, the company he established, Supermicro (美超微), has emerged as a market favorite over the past year, earning the moniker "AI high-flying stock." The company received considerable attention at this year's COMPUTEX Taipei. During his first day back in Taiwan, Liang sat down for an exclusive interview with Global Views Magazine to discuss his 30-year journey to success.

On June 5, at the COMPUTEX Taipei stage, NVIDIA (輝達) founder Jensen Huang and Liang, both natives of Taiwan, humorously switched between Mandarin, Taiwanese, and English, eliciting laughter from the crowd.

"That's fantastic!" Huang exclaimed, admiring the server rack on display.

"Everything inside belongs to you!" Liang replied, beaming.

One dominates the global AI chip market, while the other has created one of the top three server brands worldwide. Interestingly, both come from southern Taiwan and began their entrepreneurial journeys in Silicon Valley in 1993. Now, they ride the wave of the AI era together.

While Liang isn’t as well-known in Taiwan as Huang, and Supermicro is often confused with AMD (超微), led by Su, who is affectionately called the "Tainan daughter," Supermicro’s stock price has more than doubled in the past year, even surpassing US$1,200 at one point, significantly outpacing the other two companies. It has become a market sensation as an AI high-flying stock.

Liang’s connection to Taiwan runs deeper than those of Huang and Su. Born into a farming family in Chuci, Chiayi (嘉義竹崎), he graduated from the electrical engineering departments of Taipei Tech (北科大) and Taiwan Tech (台科大) before heading to the United States for higher education and entrepreneurship. His three younger brothers have also established tech companies in Taiwan — Ablecom Technology Inc. (大訊), Compuware Technology Inc. (肯微), and Aeon Lighting Technology Inc. (浩然) — providing a robust supply chain for their older brother.

Liang came back to Taiwan for COMPUTEX after six months. He arrived at 4:30 a.m. on June 1, and his day was packed with meetings. He also went straight to his alma mater, Taipei Tech, to deliver a speech to the graduates. After a busy half-day, he finally found time for an interview with Global Views Magazine. Despite looking slightly tired, he spoke with energy, saying, "I'm fine, not very tired," with a smile.

Investing in Liquid Cooling for 20 Years, Finally Seeing Market Boom
From its inception, this remarkable company has followed a distinct path, concentrating on server motherboard design and manufacturing. It gradually expanded its offerings to include servers, full racks, and solutions, focusing on small to medium-sized clients. The company went public on Nasdaq in 2007.

Over the past two years, Supermicro has capitalized on the AI trend, with its revenue and profits skyrocketing. It has been catching up to Dell (戴爾) and Hewlett Packard Enterprise (慧與) in the AI server sector. For the third fiscal quarter of 2024 (as of March 31, 2024), Supermicro reported US$3.85 billion in revenue, a 200% increase from the same period last year, and US$402 million in profit, nearly five times higher. The company has adjusted its annual revenue forecast to between US$14.7 billion and US$15.1 billion.

One of Supermicro's critical advantages lies in the Direct Liquid Cooling (DLC) technology, which Liang chose to invest in as early as 2004. This method uses water to remove heat from data centers, replacing the traditional fan-based "air cooling" system. Liang passionately spoke about this topic at COMPUTEX and even asked his juniors at his alma mater, "Do you believe liquid cooling will be cheaper than air cooling?"



Liang repeatedly explained that liquid cooling has been around for 30 years and is not a new technology. However, its high cost, maintenance challenges, and long implementation time of 4 to 12 months have kept its market share below 1%. As AI advances, energy savings have become paramount. Over the past three years, Supermicro has worked on technological breakthroughs, reducing implementation time to just 2 to 4 weeks, and cutting energy consumption by approximately 40%.

"If data centers globally adopt liquid cooling, the industry could save between US$10 billion to US$20 billion in electricity costs annually. This year, our goal is to increase market share from 1% to 15%!" Liang announced this objective with a hint of satisfaction, as the technology that once struggled to find interest now garners significant client inquiries.

As Liang’s partner for 30 years, Huang highlighted the need for all data centers to transform in the accelerated computing era. "Charles and his team are ready to take orders!" Huang humorously pitched on stage, demonstrating their close friendship, "Supermicro will become a huge company."



Maintaining a 'Go with the Flow' Mindset While Remaining Diligent and Proactive
While everything appeared to come together seamlessly, for Liang, the 30-year journey was far from easy. "It's not 'ten years of hard work unnoticed, but one success makes you famous.' It's more like 'decades of effort, repeated attempts, yet still unknown!'" he said, looking back on his entrepreneurial path with a touch of self-mockery.

Luckily, the teachings of Laozi (老子) and Zhuangzi (莊子) offered him considerable help. During a particularly stressful period marked by sleepless nights, Liang purchased several books by Laozi and Zhuangzi. Unexpectedly, they aided his sleep, prompting him to read them repeatedly.

"In my youth, I dreaded reading Laozi and Zhuangzi, fearing they would render me unmotivated and unaccomplished, akin to a 'lying flat' individual," Liang said. "Later, I discovered that going with the flow is actually the greatest strength."

He cited this philosophy to explain why Supermicro consistently leads the market, having entered the server industry in 1993 and invested in liquid cooling and green computing in 2004, culminating in today's explosive growth. "As long as the decisions feel right and you continue naturally, you will see rewards; even if not, you are still achieving good," he noted.

Despite an open mindset, his actions are marked by proactivity and diligence. Liang encountered numerous managerial challenges while operating a business overseas but remained hands-on and emphasized communication. In the company's early days, he worked over 100 hours a week. Even after the AI revolution, at 66, his hours remain unchanged, with nearly hourly meetings to align work goals and product development vision with cross-department colleagues, forming Supermicro's organizational culture over the past 30 years.



Increasing Investment in Taiwan in the Short Term
Unlike many entrepreneurs who relish discussing industry competition or analyzing intricate investment strategies, Liang starts by smiling and saying he is an engineer by background and doesn't particularly focus on these aspects.

His primary concern remains the original intent behind each endeavor. This explains why the rising stock price and fame of Supermicro haven't significantly impacted him. "I imagined this day might come, but I never fixated on when to reach it. Just do your best!" he said, once again displaying his natural mindset.

After all, much work remains. Liang stressed that AI's impact surpasses that of the Industrial Revolution, and we are merely at the starting point. Like the Chinese historical figure Jiang Taigong (姜太公), who didn’t become the prime minister until 80 and governed a prosperous era, Liang believes that as long as he has the energy and interest, he will persist.

One of his persistent focuses is increasing investment in Taiwan. In 2021, Supermicro invested NT$2 billion in an expansion project in Taoyuan Bade (桃園八德), and announced a total investment of NT$20 billion in Taiwan, garnering considerable attention. Now, as we step into the AI era, Liang strongly believes that Taiwan will be a hub for development from semiconductors to systems, software, and applications. He disclosed that the new expansion plans will be finalized in the upcoming months.

"I was deeply moved when I heard the Bade investment plan," said Shen Jong-chin (沈榮津), a former vice premier and a friend of Liang from their Taipei Tech days. After graduation, they pursued different paths until they reunited in the U.S. years later when Shen was the Minister of Economic Affairs. Shen encouraged Liang to invest in Taiwan, and it quickly materialized, undoubtedly laying a critical foundation for Taiwan's AI industrialization.

Naturally, Taiwan holds more significance for Liang than just being part of the supply chain; it also represents his deep longing for home. At the end of the interview, he straightforwardly mentioned that as he ages, he increasingly misses home. What does he miss most about Taiwan? "A lot, a lot," he replied with a genuine smile.

This longing was probably most palpable on the COMPUTEX stage that day. It's been 40 years since Liang moved to the U.S., enduring many challenges and steering the brand to global prominence. However, his natural and warm manner of speaking Taiwanese remains unchanged.

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This article is excerpted from the June issue of Global Views Magazine; for more articles, please visit the Global Views Magazine website: https://www.gvm.com.tw  
Here is the link to the Chinese story: 【專訪】美超微大爆發！梁見後苦熬30年，終於看到DLC直接液冷技術翻轉

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