Supermicro's Malaysia factory expansion has been put on hold due to financial accounting issues, prompting its major client, YTL Group, a leading buyer of NVIDIA AI servers in Malaysia, to shift its orders. YTL Group is now turning to Wiwynn's Malaysia plant, a subsidiary of Wistron Group, to fulfill its needs for NVIDIA's top-tier GB200 NVL72 full rack servers.
Wiwynn's Strategic Location Secures Order
This represents the first significant order shift for Taiwanese manufacturers following Supermicro's financial issues. While it was previously speculated that NVIDIA would be directing these order shifts, this particular shift came directly from Supermicro's major client. Wiwynn's success in securing this order is primarily due to its aggressive expansion of its Malaysia plant, which is located adjacent to Supermicro's new factory in Malaysia, along with Wiwynn's strong overall capabilities in the AI server field, thereby appealing to YTL Group.
YTL Group Partners with NVIDIA
YTL Group has a strong relationship with NVIDIA and is actively promoting AI development in Malaysia. In March, YTL Power announced a partnership with NVIDIA to deploy NVIDIA DGX GB200 NVL72 full rack AI server systems. YTL plans to build a green AI data center in Johor, Malaysia, with a computing power exceeding 300 ExaFLOPS, making it one of the fastest supercomputers in the world.
Supermicro's Expansion Plans Halted, Wiwynn Capitalizes
Industry sources indicate that the large order for YTL's AI data center was originally shared by both Supermicro and Wiwynn. However, Supermicro's new Malaysian factory, which was originally expected to be online in the fourth quarter, has been delayed due to the company's financial issues. Wiwynn's Malaysian plant has been expanding its production capacity, offering a one-stop manufacturing service and advanced liquid cooling technologies, allowing them to take over the order from Supermicro.
Wiwynn Expands its Malaysia Capacity
- Wiwynn is strengthening its Malaysia plant's ability to deliver complete solutions, from server motherboards to full rack assemblies, to meet growing demand for cloud services in Southeast Asia.
- Wiwynn's Phase 1 full rack server assembly plant in Johor, Malaysia, began mass production in October of last year. Phase 2, a motherboard production line, is expected to be completed and start mass production in the second half of the year.
- Wiwynn also plans to build a third facility if needed.
Johor Emerging as a Data Center Investment Hub
Johor is the largest data center investment location in Malaysia and the ninth largest data center market in the Asia-Pacific region. The region's lower land costs, availability of water and power, and proximity to Singapore have attracted multinational corporations such as the Australian data center giant, AirTrunk, and Microsoft. Wiwynn, with its advantageous location, production capacity, and technological prowess, is poised to benefit from the Malaysian AI data center market.
Wiwynn Actively Expands and Secures Funding for R&D
Recognizing the potential of AI demand, Wiwynn is actively expanding its production capacity and investing in technological research and development. The company has initiated a large-scale fundraising plan. In June, Wiwynn's board of directors approved the issuance of Global Depositary Receipts (GDRs) and unsecured overseas corporate bonds, raising over 46.7 billion New Taiwan Dollars.
