Super Micro Computer (SMCI) Reportedly Drops The Ball On A “Huge” Order For NVIDIA’s NVL72 GB200 Chips, Prompting A Taiwanese Company To Pick Up The Tab

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Super Micro Computer (SMCI), a retailer of high-performance servers and liquid-cooled AI racks, is rapidly approaching the proverbial twilight zone as its legal woes mount and major customers start bailing on existing orders.

We reported in early November that NVIDIA had allegedly begun redirecting its orders that were originally placed with Super Micro Computer to other, more stable suppliers. If confirmed, this would constitute a seminal moment as SMCI was, until recently, NVIDIA's third-largest customer.

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Now, it seems that Super Micro Computer's major clients are also abandoning it, especially as it remains mired in allegations of financial impropriety, a preliminary DOJ investigation, the exodus of its second auditor in around 18 months, and an imminent de-listing from the Nasdaq exchange.

To wit, a Taiwanese daily is now reporting that Super Micro Computer recently halted the expansion of its major factory in Malaysia, one that would have doubled its production capacity to 10,000 server cabinets per month.

This expansion halt, however, upended the plans of YTL Group - a major consumer of NVIDIA's AI servers and one of Super Micro Computer's largest customers - to build a green AI data center on the 1,640-acre YTL Data Center Campus in Johor, Malaysia. The facility aims to stitch together one of the largest AI supercomputers in the world by deploying NVIDIA's DGX GB200 NVL72 full cabinet AI servers at scale.

YTL has now reportedly transferred its orders with Super Micro Computer to Taiwan's Wistron Group and its Weiying factory in Malaysia.

This development comes as SMCI's CEO, Charles Liang, recently conceded that the company was "asking NVIDIA every day" for