Supply Chain Research

Super Micro reported fiscal Q4’20 revenues which increased by 16.0% year over year and were 13.7% better than analysts’ expectations according to S&P Global Market Intelligence figures. The computer server supplier nonetheless reported a dip in earnings due to “elevated costs resulting from the impact of COVID-19 on our operations” according to  CEO Charles Liang, and included “logistical issues, rising shipping costs and employee working from home“.

Growth in the fiscal Q1 / calendar Q3 looks set to continue, albeit at a slower rate. Panjiva’s data for U.S. seaborne imports shows that total shipments linked to Super Micro increased by 10.0% year over year in July after surging 43.6% higher in calendar Q2.

The firm also faces challenges in its supply chain from the U.S.-China trade war. That’s led to tariffs being applied to many of its critical imports. As flagged in Panjiva’s July 17 report it is unlikely that technology rivalry between the two countries will go away no matter the outcome of the U.S. Presidential elections.

The firm has therefore “been aggressively shifting and growing certain operations and R&D works to Taiwan”, Liang has stated. Panjiva’s data shows that deliveries from China accounted for 42.9% of U.S. seaborne imports linked to Super Micro in the 12 months to July 31, down from 53.9% in 2017 with the remainder coming from Taiwan.

Chart segments U.S. seaborne imports linked to Super Micro by port of lading origin on a monthly and three-month average basis. Source: Panjiva

Super Micro’s imports are led by computer components (HS 8473) where total U.S. seaborne imports have also accelerated as demand for work-from-home systems has increased during the COVID-19 pandemic. Indeed, Panjiva’s data shows that imports in July climbed 25.4% year over year after rising by 6.5% in Q2. 

Among the other major computer manufacturers, Hon Hai did better with a 48.1% surge in July following a 34.9% drop in Q2 that may reflect supply chain challenges. Wistron meanwhile appears to be in something of an extended downturn. Consumer component suppliers meanwhile have seen an acceleration in demand for peripherals with keyboard and mouse supplier Corsair experiencing a 486% jump in shipments in July after a 14.2% rise in Q2.

Chart segments U.S. seaborne imports of computer components by shipper on a monthly and three-month average basis. Source: Panjiva