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Super Micro is moving production from China due to fear of spying

Bouzoo

Another day, another China spying article. 

Super Micro, the server board manufacturer is completely ditching China as the country of their production. If you don't remember, last October Bloomberg published an article about spy chips that were allegedly being installed in Super Micro equipment that was used by Amazon and Apple, which Super Micro immediately denied. Due to fear being a strong weapon, according to one company executive, Super Micro has been asked not to supply their US customers with motherboards made in China. After all, 60% of their customers are US based.

Apparently things have not been so good for Chinese server boards production in general:

 

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In 2017 roughly 90% of the motherboards used in the 13.9 million servers shipped worldwide were made in China. Last year that had dropped to less than 50% of motherboards used in the global total of 15.2 million, according to Digitimes Research, a tech supply chain specialist. 

"There is a major shift out of China happening from the server supply chain," said Betty Shyu, a server analyst at Taipei-based Digitimes. Chinese-made server motherboards had also been hit by the additional tariffs imposed by Washington, she said.

 

When they say shifting their production, they really do mean that:

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In addition to asking suppliers to shift production, Super Micro is expanding its own in-house manufacturing facilities to mitigate any perceived risk. The company mostly assembles server systems in-house but outsources motherboard production to many suppliers. "We have to be more self-reliant [to build in-house manufacturing] without depending only on those outsourcing partners whose production previously has mostly been in China," the executive said.

On Monday the group broke ground on a 2 billion New Taiwan dollar ($65 million) new factory in the northern Taiwanese city of Taoyuan and it is weighing a further NT$10 billion investment locally, Charles Liang, founder and CEO said this week. It is also expanding in Silicon Valley.

Super Micro's products for the U.S. market had largely eliminated motherboards made in China, he said. Mirroring the global trend, less than 50% of the motherboards used in the 1.55 million servers shipped by Super Micro last year were made in China, according to Digitimes's Shyu. This compares with more than 90% in 2017. 

Seems that the damage has already been done, since Super Micro is expecting a drop of 10% for period of first three months this year due to declining sales ever since the October article was released. 

 

What do you think about Chinese espionage? Reality or a myth? While I think that the level of their espionage has been blown out of proportions with Huawei, I don't think there is not a single company this big that doesn't play dirty on some level.

 

Source:

https://asia.nikkei.com/Economy/Trade-war/Server-maker-Super-Micro-to-ditch-made-in-China-parts-on-spy-fears

The ability to google properly is a skill of its own. 

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I really hope this trend continues with other manufacturers.

 

China cannot be trusted to be the worlds supplier of electronics. So long as it is run by the current Chinese dictatorship.

Ketchup is better than mustard.

GUI is better than Command Line Interface.

Dubs are better than subs

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This is getting ridiculous now

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Just now, Trik'Stari said:

I really hope this trend continues with other manufacturers.

 

China cannot be trusted to be the worlds supplier of electronics. So long as it is run by the current Chinese dictatorship.

 

There was a good comment on Reddit:

Quote

Come back to the US where instead of spying rumors the nsa definately installs hardware backdoors.

 

No country should be trusted as a majority supplier of electronics. 

The ability to google properly is a skill of its own. 

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2 minutes ago, Bouzoo said:

 

There was a good comment on Reddit:

 

No country should be trusted as a majority supplier of electronics. 

I'd rather have the NSA spy on me than China. At least it's my own country and I probably won't get shipped off to a gulag

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Just now, Eaglerino said:

I'd rather have the NSA spy on me than China. At least it's my own country and I probably won't get shipped off to a gulag

Just by looking at your profile picture I can assume where you stand on this. 

 

Also:

Just now, Eaglerino said:

China

Just now, Eaglerino said:

gulag

Pick one. 

The ability to google properly is a skill of its own. 

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This makes me believe the Bloomberg article actually had some validity then. Maybe this is why Apple is moving everything to India

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Just now, BuckGup said:

This makes me believe the Bloomberg article actually had some validity then.

Either that or the fear of Chinese is so strong that their customers might've switched to other OEM. Or this is just a part of a huge economic conspiracy .

The ability to google properly is a skill of its own. 

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25 minutes ago, Bouzoo said:

Either that or the fear of Chinese is so strong that their customers might've switched to other OEM. Or this is just a part of a huge economic conspiracy .

Considering China is constantly hacking other countries and more notably had infected government computers used to design military parts in CAD for over 9 years I'd be scared to

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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57 minutes ago, Trik'Stari said:

I really hope this trend continues with other manufacturers.

 

China cannot be trusted to be the worlds supplier of electronics. So long as it is run by the current Chinese dictatorship.

no single country should, we too easily forget that we may not agree with each other some day

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28 minutes ago, cj09beira said:

no single country should, we too easily forget that we may not agree with each other some day

While I agree, I'm more likely to trust CNN and my own government over the Chinese government.

 

Or any government that calls itself communist.

Ketchup is better than mustard.

GUI is better than Command Line Interface.

Dubs are better than subs

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1 hour ago, Bouzoo said:

 

There was a good comment on Reddit:

 

No country should be trusted as a majority supplier of electronics. 

I'd rather the NSA spy on me than China.

 

I won't be surprised if they end up being the ones to start WW3. Likely because their economy is about to collapse when all the companies go elsewhere for cheap labor, knowing what will happen to them if the Chinese population ever wakes up and overthrows them.

Ketchup is better than mustard.

GUI is better than Command Line Interface.

Dubs are better than subs

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4 minutes ago, valdyrgramr said:

Team America theme intensifies

 

I'll up you one:

Spoiler

image.png.2c875b58c319df884574f4fc4933e34c.png*

*all coincidences with forum members are completely accidental

 

The ability to google properly is a skill of its own. 

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Love it: everybody is an expert on corporate and state espionage and it obviously couldn't happen coming from the US side of things

     He said facetiously.

 

-------

Current Rig

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1 hour ago, BuckGup said:

Considering China is constantly hacking other countries and more notably had infected government computers used to design military parts in CAD for over 9 years I'd be scared to

Is not like all country are essentially doing this aswell to each other.

Magical Pineapples


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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1 hour ago, BuckGup said:

Considering China is constantly hacking other countries and more notably had infected government computers used to design military parts in CAD for over 9 years I'd be scared to

And the USA, Russia, North Korea, Iran, and probably everyone else that can doesn't?

 

39 minutes ago, Trik'Stari said:

I'd rather the NSA spy on me than China.

 

I won't be surprised if they end up being the ones to start WW3. Likely because their economy is about to collapse when all the companies go elsewhere for cheap labor, knowing what will happen to them if the Chinese population ever wakes up and overthrows them.

... I'd rather no-one is spying on me with hardware backdoors and mandatory security vulnerabilities thanks. I mean the USA doesn't exactly have a great track record with handling private and sensitive information...

 

I've got my money on Trump starting WW3 when he gets offended by Putin or Jinping and just:

 

image.png.70c950819dae06ef8a7731b6f3db9777.png

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9 minutes ago, desertcomputer said:

Is not like all country are essentially doing this aswell to each other.

 

3 minutes ago, Belgarathian said:

And the USA, Russia, North Korea, Iran, and probably everyone else that can doesn't?

No I don't deny that that's happening. Look at the US election. It's just China has been notorious for copying US made planes and ships.

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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Good move for the image of the company. Also a good move to get more companies to leave China. We depend on them too much for our goods. 

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19 minutes ago, DrMacintosh said:

We depend on them too much for our goods. 

^how the beginning of knockoffs happened

✨FNIGE✨

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35 minutes ago, Belgarathian said:

And the USA, Russia, North Korea, Iran, and probably everyone else that can doesn't?

 

... I'd rather no-one is spying on me with hardware backdoors and mandatory security vulnerabilities thanks. I mean the USA doesn't exactly have a great track record with handling private and sensitive information...

 

I've got my money on Trump starting WW3 when he gets offended by Putin or Jinping and just:

I agree, but you'd need politicians who aren't complete fucking idiots in congress for that to happen.

 

And good luck with that.

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3 hours ago, Eaglerino said:

I'd rather have the NSA spy on me than China. At least it's my own country and I probably won't get shipped off to a gulag

 

2 hours ago, Trik'Stari said:

I'd rather the NSA spy on me than China.

 

I won't be surprised if they end up being the ones to start WW3. Likely because their economy is about to collapse when all the companies go elsewhere for cheap labor, knowing what will happen to them if the Chinese population ever wakes up and overthrows them.

idk about that. i live in the US not china so the US has easy access to me while china doesnt

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I do think China does quite a bit of spying but the Bloomberg article I remember as a fucking joke. They pointed to what looked to be a tiny resistor by the socket and said "THIS THING SENDS EVERYTHING TO CHINA STOP USING SUPERMICRO!!!" and that was their proof.

I spent $2500 on building my PC and all i do with it is play no games atm & watch anime at 1080p(finally) watch YT and write essays...  nothing, it just sits there collecting dust...

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#1. Treat others as you would like to be treated.

#2. It's best to keep your mouth shut; and appear to be stupid, rather than open it and remove all doubt.

#3. There is nothing "wrong" with being wrong. Learning from a mistake can be more valuable than not making one in the first place.

 

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Policy changes and wage increases in China means a lot of investors are looking at moving to India, Indonesia or other potensial countries. 

 

SuperMicro provably has some security concern, but for them this is also an oppertunity at shifting production elsewhere for cheaper cost.

36 minutes ago, Bananasplit_00 said:

"THIS THING SENDS EVERYTHING TO CHINA STOP USING SUPERMICRO!!!" and that was their proof

If it was a mobile SOC sized chips, then it would have some merrit. 

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I read it as a US tactic for securing commercial dominance over another market. The US is known to do the same 'make unsubstantiated FUD and threats to coerce business and power into US hands' thing in other industries, and EU countries are catching on and pushing back against those efforts to centralize basically everything into the US' control:

On 4/28/2019 at 11:07 PM, Delicieuxz said:

March 8 - Germany won’t ban Huawei & ready to oppose US pressure – economy minister

March 26 - EU Commission ignores US calls to ban Huawei in 5G telecom systems blueprint

April 15 - Belgian cybersecurity center finds no evidence of Huawei spying threat, despite US claims

April 26 - Juncker refuses to reject Huawei 'just because it's Chinese' amid US pressure

April 26 - PM Conte says Huawei won’t face discrimination in Italy

 

European countries keep refuting US claims against Huawei and refusing to ban or restrict business cooperation with the Chinese tech giant. And despite US allegations against Huawei, European countries have not found evidence for the threats the US alleges there to be.

 

 

8 hours ago, Eaglerino said:

I'd rather have the NSA spy on me than China. At least it's my own country and I probably won't get shipped off to a gulag

That's opposite to how the threat can be projected. China has no means to do anything to you: You aren't within their borders, you aren't under their laws, and they have less interest in you as an individual and less leverage over you. The US has you where it can do whatever it wants to you.

 

And people do get shipped off to 'gulags' in the US: Indefinite detention without trial, Guantanamo, CIA black sites...

You own the software that you purchase - Understanding software licenses and EULAs

 

"We’ll know our disinformation program is complete when everything the american public believes is false" - William Casey, CIA Director 1981-1987

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8 hours ago, Trik'Stari said:

I really hope this trend continues with other manufacturers.

 

China cannot be trusted to be the worlds supplier of electronics. So long as it is run by the current Chinese dictatorship.

And who can? Unfortunately the correct answer is nobody.

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