TAIPEI (Taiwan News) — Fositek Corp., a subsidiary of Asia Vital Components, reported that its profit last year grew more than 70% compared with 2024, mainly driven by rising demand for AI technology, which boosted its server business.

The company posted revenue of NT$12.41 billion (US$397 million) last year, up 51.61% from 2024, with a net profit of NT$2.13 billion, up 73.19%. Both revenue and profit set records, and the company will pay a dividend of NT$12.5 per share, per CNA.

In January, the company’s revenue reached NT$1.4 billion, up nearly 116% year-on-year. It expects both revenue and profit to grow further this year.

Company Chair Huang Tzu-mo (黃祖模) said demand for AI drove server products to account for 36.3% of the company’s revenue last year, up 5.3% from 2024. However, revenue from foldable phone hinges fell from 82.6% to 56.4%, while laptop hinges dropped from 10.9% to 6.4%.

To meet growing orders for AI server and GPU components, the company plans to expand production lines. It aims to produce 350,000 server slide sets and 3 million quick-release connectors for GPU this year, with manufacturing set for its Vietnam factory.

Company President Hsu An-ssu (徐安賜) said that as AI server cases get more compact, quick-release connectors allow easier maintenance and replacement than traditional welded connectors. He added the company is developing a new connector for smaller server cases.

Fositek is also speeding up shipments of water-cooling quick connectors for Nvidia’s AI supercomputing GB300 servers, which help meet the cooling needs of the platform during operation.

Fositek estimated that more smartphone makers will launch foldable phones, potentially boosting its foldable phone hinge sales. The company said that it is the main supplier for Huawei Technologies’ foldable phones. With Huawei set to release new models in the first half of this year, Fositek’s revenue is expected to rise further.