TAIPEI (Taiwan News) — Taiwan's Yen Sun Technology Corp., which built its business around automotive electronics, is accelerating expansion into AI cooling solutions as demand rises for high-performance computing infrastructure.
Yen Sun is developing capabilities across the AI cooling chain, covering product development, testing, and production. It has completed a lineup of fan and liquid cooling products, according to MoneyDJ and CNA.
The new solutions are aimed at applications such as edge computing and small- to medium-sized data centers, where customized thermal management systems are often needed. Yen Sun’s 120-kilowatt liquid cooling system is currently undergoing mass production validation, while samples have been provided to potential customers for qualification.
To enhance its testing capabilities, Yen Sun expects to complete an advanced computing cooling evaluation laboratory at its Kaohsiung plant by the end of August. The facility will simulate and evaluate complete AI liquid and air cooling systems, enabling customers to assess performance before adoption.
The company is also preparing additional cleanroom-level production facilities to meet manufacturing requirements for next-generation thermal solutions.
These investments come as AI servers require increasingly advanced methods to manage the heat generated by more powerful chips. Citing market research firm Frost & Sullivan, Yen Sun said the global data center cooling market is expected to expand from NT$336 billion (US$10.47 billion) in 2024 to NT$1.69 trillion by 2034.
The shift toward more efficient heat management is being accelerated by the rapid development of AI processors. Morgan Stanley said in a recent report that graphics processing unit suppliers such as Nvidia are introducing chips with higher power consumption, making it more challenging for traditional air-based systems to maintain efficiency, according to Sinotrade.
Liquid cooling addresses this challenge by using water or specialized fluids to absorb heat directly from electronic components and carry it away, rather than relying solely on fans.
To capture expected growth in AI server demand, Yen Sun has started expanding production capacity at its Dongguan plant. Once the expansion is completed, monthly output is expected to reach 600,000 units, with production gradually increasing as early as the third quarter.
Automotive electronics remained Yen Sun’s largest business last year, accounting for 47% of revenue. High-performance computing systems contributed 29%, followed by consumer technology products at 15% and industrial equipment and other businesses at 9%, according to MoneyDJ.
For 2026, Yen Sun expects growth to come from both its AI-related thermal solutions and its automotive electronics operations.
