TAIPEI (Taiwan News) — Cooling solution manufacturers Asia Vital Components and its subsidiary Fositek posted record-high revenues in September, fueled by strong demand for liquid cooling technologies in artificial intelligence servers.
AVC reported consolidated revenue of NT$14.5 billion (US$474 million) in September, marking its eighth straight month of record-high revenue since February. The growth was largely attributed to Nvidia’s GB200 platform, introduced last year, which incorporates liquid cooling technology, according to CNA.
Traditional air cooling remains the dominant method in data centers and corporate server rooms, using fans, heat pipes, and metal fins to direct airflow over components. However, as AI chips produce kilowatt-level heat, air cooling has reached its limits, according to Business Next.
In contrast, liquid cooling systems circulate coolant directly around or near high-power chips, dissipating heat more efficiently. This enables them to handle loads exceeding 1,000 watts, making liquid cooling a key technology for next-generation AI servers.
AVC Chief Financial Officer Chen Yi-cheng (陳易成) said the company expects further growth in the second half of the year, driven by increasing shipments of Nvidia’s GB-series products, wider adoption of liquid cooling among application-specific integrated circuit clients, and stable orders for thin vapor chamber modules used in smartphones.
Fositek also reported its strongest performance to date, with September revenue reaching NT$1.2 billion, up 58.24% from the same period last year. For the first three quarters, Fositek’s revenue totaled NT$8.4 billion, surpassing its full-year 2024 total of NT$8.2 billion.
Analysts expect Fositek’s revenue to peak in the fourth quarter, supported by new foldable phone launches and continued server demand.
Industry observers said the broader server supply chain is likely to maintain momentum through year-end as shipments of Nvidia’s next-generation GB300 platform accelerate and ASIC demand strengthens. Companies such as King Slide Works and Chenbro Micom are expected to benefit from their scale, market presence, and diversified client bases, according to TaiwanHot.
With AI server demand showing no signs of slowing and major US tech firms expanding investments, analysts expect Taiwanese component suppliers to sustain growth momentum into next year.
