Asia Vital Components, Taiwan’s largest thermal solutions provider, posted record quarterly revenue of NT$29.6 billion ($925 million) in the second quarter as demand for AI server liquid cooling systems continued expanding. The company, which trades as ticker 3017 and has been listed since 2002, achieved a market capitalization of 260 billion TWD as of November 2024.
The Kaohsiung-based manufacturer reported net income of NT$4.0 billion ($125 million) for the quarter, translating to earnings per share of NT$10.3 – marking the first time the company earned more than one share capital in a single quarter. For the first half, earnings per share reached NT$18.58, a record for the period.
However, currency headwinds dampened profitability metrics. Chief Financial Officer Chen Yi-cheng noted that New Taiwan dollar appreciation reduced gross margins by 1.42 percentage points to 24.41% during the quarter, though optimized product mix helped maintain strong earnings growth.
The surge reflects broader momentum in AI infrastructure, where liquid cooling has emerged as essential for managing escalating thermal demands from high-performance chips. Traditional air cooling methods struggle with newer AI server chips that often require thermal capacity exceeding 700W, with some like NVIDIA’s GB200 reaching 2,700W.
For the six-month period, Asia Vital Components’ net profit surged 105% year-over-year to NT$7.2 billion ($225 million). The company expects continued revenue growth in the second half, barring systemic risks, as AI server shipments maintain their upward trajectory.
AVC manufactures cooling solutions including fans, heat sinks, vapor chambers and liquid cooling systems for major OEMs including HP and Lenovo. The company operates production facilities across China and Vietnam, positioning it within Taiwan’s dominant thermal management supply chain that accounts for approximately 70% of the global market.
