Super Micro Computer CEO Charles Liang unearthed his life's philosophy studying nature growing up in Taiwan. A forest surrounded his family's home. The lush environment taught Liang lasting lessons about business and life.
"Everyday, I observed the trees and plants and how they grow," said Liang, 64, who founded the fast-growing San Jose, Calif.-based computer storage company in 1993.
Liang's childhood experience stirred within him as he grew as a leader and entrepreneur. It also inspired a philosophy and leadership style that helped him build a company now worth nearly $6 billion out of nothing. Super Micro Computer is a global leader in high-performance, high-efficiency server and storage technology and green computing.
His mantra for the company, "Follow our nature," ties it all together. His message for others? Pursue your individual passion and growth will follow. "My philosophy is to do whatever I like and I lead my (employees) to do whatever they like," Liang told Investor's Business Daily.
Master The Cycle Of Success Like Charles Liang
Liang aims for a cycle of success. It all starts with employees inspired about their work. "My (employees) are happy and make more money and they make customers happy by designing products with better performance and that reduce energy consumption," he said. "We do whatever we believe is right. Our success is to truly follow our nature."
Liang's growth strategy blazed Super Micro Computer a new path in a highly cutthroat industry. Under Liang's guidance, the company evolved from a motherboard maker to a growing force in computing.
Super Micro Computer, also known as Supermicro, emerged as a top financial and stock performer, too. While many businesses struggled last year amid a slow economy and high inflation, Super Micro Computer bucked the trend with stunning results. The company's adjusted profit in 2022 alone jumped by more than 127%.
And since the company went public in 2007, shares rocketed 1,165%, topping the S&P 500's 175% gain in that time. The company's market value allowed it to join the S&P 400 Midcap Index last December.
Know Your Calling
What's the secret? It all goes back to Liang's principle to "follow our nature." And that makes it unique in the technology sector.
"I came to California to make higher quality products than other tech companies," said Liang. "We design better products with better performance and do whatever we can to make customers happy ... and whatever we can to reduce energy consumption. That's following our nature."
He hires employees whose interests match the company's and who "excel" in pleasing customers. "Pick the right people and lead them to pursue the right direction," said Liang.
But it's not just a catchy slogan. Liang pays employees more than rivals and gives all employees stock options. But it's not just money, either. The company's focus on green computing inspires employees with a more noble goal, he says.
Liang: Be A Hands-On Leader
Liang thinks top leaders need to get their hands on the actual work. He still spends much of his time in engineering, building products and in the day-to-day design of every product.
And he has the engineering chops to keep up. Born in Taiwan, Liang holds an M.S. in Electrical Engineering from the University of Texas at Arlington and a B.S. in Electrical Engineering from National Taiwan University of Science & Technology in Taiwan. Liang earned several patents for server technology.
But Liang also knows leadership is more than just rolling up sleeves with fellow engineers. He carefully took on jobs during his career that would help him learn how to guide people, too. He's held leadership roles at several Silicon Valley firms, including president and chief design Engineer of Micro Center Computer, a high-end motherboard design and manufacturing company, from July 1991 to August 1993.
Prioritize Innovation
It's refreshing that Liang can bring such a Zen-like approach to the industry. High-tech companies that don't innovate often die, an existential threat that usually leads to stress and paranoia.
But Liang says the company is positioned to make sure it can excel. Unlike many in its field, Super Micro Computer designs, manufactures, sells and services its own products.
As a result, it's can "optimize" its product designs for particular markets and larger customers. That paid off in the pandemic. Super Micro Computer controlled its supply chain. So unlike many of its competitors, it could make adjustments to keep products shipping.
The structure of Super Micro Computer's business drives "significant outperformance," says Nehal Chokshi, senior analyst at Northland Capital Markets, who ranks Super Micro Computer as one of his top stock picks for 2023.
"Supermicro's business architecture has a structural advantage relative to key ... competitors Dell Technologies and Hewlett Packard Enterprises," Chokshi told Investor's Business Daily. "That has driven the 20% average top and bottom line growth over the past two decades."
Look For Win-Wins
Tapping his roots living near a forest, Liang in 2004 focused on computing that's more sustainable for the earth. But a movie also made a huge impact.
Liang took his kids to the 2004 science fiction disaster movie "The Day After Tomorrow." It's about global warming triggering a new ice age. The movie inspired a new innovative energy-saving product line for Super Micro Computer.
After seeing the movie, "my kids said 'people are consuming so much energy,'" Liang recalls. "'We know you're a very smart engineer, what can you do (to help)?'"
After his drive home, Liang called the company's engineers to see if Super Micro Computer could design servers that could sip less energy than the high-frequency servers it was already making. The answer was yes.
That push helped the company grow, too, says Liang. Green computing saves money for customers, makes customers happy and makes the planet healthier, too, he said. Plus, Super Micro Computer employees get an innate pleasure building these products.
Make Green Part Of Your Business
What's a green computer? Super Micro Computer's servers are designed to require less power at a given performance level. Clever engineering allows this. In addition, Super Micro Computer servers can be upgraded without throwing away the chassis.
Going green pushes engineers to do more with less. For example, the computer air flow subsystems developed around 2004 or 2005, can save customers much more money than regular servers, Liang says.
Again, Liang's love of nature comes through in his personal life. He also heads the Green Earth Foundation. The organization bought almost 200 acres of land in Milpitas, Calif., to preserve green space.
Growing and planting trees puts Liang back in touch with nature. And it's a project he does with his wife to relax.
Look For A Bigger Tomorrow Like Liang
Liang thinks Super Micro Computer has plenty of room to grow. "We aim to double revenue very soon," he said.
Analysts think the company's revenue will jump nearly 30% this year to $6.7 billion. That's remarkable if you consider the company's revenue last year was nearly 60% higher than it was in 2018. Liang is hopeful for what's possible when you stay true to your principles.
Super Micro Computer is growing its U.S. campus. And it started to grow quickly in Taiwan and building a new campus in Malaysia, he says.
"Our tomorrow is much bigger than today and I'm overly excited for that," said Liang.
Super Micro Computer CEO Charles Liang's Keys
- Founded Super Micro Computer in 1993 and built it into a global leader in high-performance and efficient computer storage.
- Overcame: Risks of launching a new business model and green computing in a competitive industry.
- Lesson: "My philosophy is to do whatever I like and I lead my (employees) to do whatever they like. Our success is to truly follow our nature."
