Super Micro Computer is exploring setting up a server manufacturing unit in India and is in talks with several state governments for it, according to people aware of the matter.
"Super Micro Computer has been in talks with at least three states --Maharashtra, Telangana and Karnataka --to assess the possibility of setting up a server manufacturing unit," one of the people cited earlier told ET.
"They are one of Nvidia's partners and their business has been bolstered by the demand for AI infrastructure lately. As of now, exploratory talks have taken place and they are still trying to understand the ecosystem available in India before signing on the dotted line."
An email query sent to Super Micro Computer remained unanswered till as of press time.
San Jose-headquartered Super Micro Computer reported revenue of $22 billion for the year ended June 2025, largely driven by rising demand for AI infrastructure.
It also raised its fiscal year 2026 revenue guidance to at least $40 billion, citing surge in demand for AI infrastructure and Nvidia Blackwell Ultra orders.
Super Micro Computer says its products are designed and manufactured in-house at locations in the US, Taiwan and the Netherlands.
In February, Vik Malyala, the managing director and president, EMEA (Europe, Middle East, and Africa), had hinted in an interview that the company was exploring local manufacturing opportunities.
He said the company was closely monitoring the "Make in India" initiative to determine the most effective way to produce its technology locally.
Malyala said the company was carefully evaluating what made sense to manufacture in India, either on its own or through partners.
Analysts said Super Micro Computer’s potential move to set up a server manufacturing unit in India underscores the country’s strategic importance in the global AI and data-centre infrastructure supply chain.
"Local production would enable Super Micro Computer to be closer to its core clients—hyperscalers, cloud providers, large enterprises, and government-led digital-infrastructure programmes—and serve them more efficiently through faster deployment cycles, lower logistics costs and stronger alignment with localisation requirements," Prabhu Ram, vice president, industry research group, Cyber Media Research, told ET.
He said the government initiatives could further enhance cost competitiveness and bolster ecosystem partnerships, in line with the broader trend of global server OEMs (original equipment manufacturers) localising production in India.
"If Super Micro Computer sets up in India, it will provide localised access to AI hardware," Tarun Pathak, research director, Counterpoint Technology Market Research, said.
"It is also a direct correlation to the data center market which is obviously expected to boom in India. But a lot of it is also dependent on how the PLI and related support will be extended. It will also be an important push from the perspective of sovereign AI, because India is keen to reduce its dependence on imported electronic components. So if server localisation comes in, then it helps scale up the country's sovereign AI ambitions as well."
He said that with the recent thaw in relations between the US and India, the country offers an attractive alternative to China.
"The ‘China Plus One’ strategy also favours India to a certain extent for a lot of these companies," he said. "So as Indian data centres reach gigawatt scale, managing power and heat will become very critical. But India is the only market that can help a lot of these companies to reduce the TCO (total cost of ownership) and so the market offers a much cheaper and effective alternative than many other destinations."
"Super Micro Computer has been in talks with at least three states --Maharashtra, Telangana and Karnataka --to assess the possibility of setting up a server manufacturing unit," one of the people cited earlier told ET.
"They are one of Nvidia's partners and their business has been bolstered by the demand for AI infrastructure lately. As of now, exploratory talks have taken place and they are still trying to understand the ecosystem available in India before signing on the dotted line."
An email query sent to Super Micro Computer remained unanswered till as of press time.
San Jose-headquartered Super Micro Computer reported revenue of $22 billion for the year ended June 2025, largely driven by rising demand for AI infrastructure.
It also raised its fiscal year 2026 revenue guidance to at least $40 billion, citing surge in demand for AI infrastructure and Nvidia Blackwell Ultra orders.
Super Micro Computer says its products are designed and manufactured in-house at locations in the US, Taiwan and the Netherlands.
In February, Vik Malyala, the managing director and president, EMEA (Europe, Middle East, and Africa), had hinted in an interview that the company was exploring local manufacturing opportunities.
He said the company was closely monitoring the "Make in India" initiative to determine the most effective way to produce its technology locally.
Malyala said the company was carefully evaluating what made sense to manufacture in India, either on its own or through partners.
Analysts said Super Micro Computer’s potential move to set up a server manufacturing unit in India underscores the country’s strategic importance in the global AI and data-centre infrastructure supply chain.
"Local production would enable Super Micro Computer to be closer to its core clients—hyperscalers, cloud providers, large enterprises, and government-led digital-infrastructure programmes—and serve them more efficiently through faster deployment cycles, lower logistics costs and stronger alignment with localisation requirements," Prabhu Ram, vice president, industry research group, Cyber Media Research, told ET.
He said the government initiatives could further enhance cost competitiveness and bolster ecosystem partnerships, in line with the broader trend of global server OEMs (original equipment manufacturers) localising production in India.
"If Super Micro Computer sets up in India, it will provide localised access to AI hardware," Tarun Pathak, research director, Counterpoint Technology Market Research, said.
"It is also a direct correlation to the data center market which is obviously expected to boom in India. But a lot of it is also dependent on how the PLI and related support will be extended. It will also be an important push from the perspective of sovereign AI, because India is keen to reduce its dependence on imported electronic components. So if server localisation comes in, then it helps scale up the country's sovereign AI ambitions as well."
He said that with the recent thaw in relations between the US and India, the country offers an attractive alternative to China.
"The ‘China Plus One’ strategy also favours India to a certain extent for a lot of these companies," he said. "So as Indian data centres reach gigawatt scale, managing power and heat will become very critical. But India is the only market that can help a lot of these companies to reduce the TCO (total cost of ownership) and so the market offers a much cheaper and effective alternative than many other destinations."
