Super Micro Computer, Inc. (NASDAQ:SMCI) shares climbed 4% on Wednesday after the AI server manufacturer announced the creation of a dedicated federal subsidiary aimed at expanding its footprint within the U.S. government technology sector.
The new entity, named Super Micro Federal LLC, will focus on accelerating the delivery of high-performance computing and AI-driven systems to federal agencies. The division will prioritize products that are designed, built, and manufactured in the United States to comply with federal sourcing and security standards.
“Supermicro is committed to supporting the U.S. federal government in powering its next generation of technical initiatives,” said Charles Liang, President and CEO of Supermicro. “Through this initiative, Supermicro will supply U.S. federal government agencies with full data center IT solutions that are manufactured and tested from our manufacturing facilities in Silicon Valley, California.”
The company said that Super Micro Federal LLC will utilize its Data Center Building Block Solutions framework, enabling rapid customization and deployment of AI-ready infrastructure tailored for government clients.
Headquartered in San Jose, California, Supermicro recently expanded its Silicon Valley manufacturing operations and is evaluating additional U.S. production sites to support rising demand. The expansion underscores the company’s commitment to American innovation, domestic production, and supply chain security.
The initiative comes as U.S. government agencies increasingly seek domestically produced technology for critical applications in artificial intelligence, cybersecurity, and national infrastructure, aligning with broader federal efforts to strengthen domestic tech capabilities.