Asia Vital Components ships double-sided cold plates as AI servers go liquid

Asia Vital Components has started shipping double-sided cold plates built for AI servers that use vertical power delivery designs.

The Taiwanese thermal management company also made a bold forecast. It expects all GPU- and ASIC-based AI servers to adopt liquid cooling by the end of 2027. For a company that sells liquid cooling hardware, that is a prediction it would very much like to come true.

Why cold plates are getting a second side

A cold plate is a metal block that sits against a hot chip. Liquid flows through channels inside the block and carries the heat away. Think of it as a radiator bolted directly onto the processor.

Vertical power delivery, or VPD, changes how electricity reaches the chip. Power travels up through the board on a vertical path instead of being routed in from the sides. That design puts power components in a spot where heat also builds up.

The result is a cooling problem with two fronts. AVC says customers are increasingly choosing double-sided cold plates to handle VPD designs. In plain terms, one plate now has to cool from both directions at once.

The company is also preparing for even hotter silicon. AVC is developing cold plates that can handle chips with a thermal design power, or TDP, above 2,300 watts. TDP is roughly the amount of heat a chip is expected to produce under heavy load, and 2,300 watts is a lot of heat in a very small space.

The numbers behind the forecast

AVC laid out its outlook during an earnings call on November 10, 2026. The financial results gave the forecast some weight.

Revenue for the third quarter of 2026 hit a record NT$59.09 billion. That was up 51.8% from the same period a year earlier.

Margins moved in the right direction too. Gross margin climbed to 33.86%, a gain of 7.74 percentage points year over year. The company credited demand for higher-value liquid cooling products and a better sales mix.

Momentum carried into the fourth quarter. October 2026 revenue reached a record NT$22.1 billion, a 34% increase year over year.

To keep up, AVC plans to expand its liquid cooling production capacity by more than 50% in 2027. Most of that growth is set to come from its facilities in Vietnam. The company has planned capital expenditure of NT$15-17 billion for the Vietnam expansion.

Nvidia, hyperscalers and the ASIC shift

AVC already holds a strong position in the highest-profile part of the market. It commands an estimated 40-50% share of the cold plate market for Nvidia’s GB200 and GB300 platforms.

It is also recognized as a preferred supplier for Nvidia’s anticipated Vera Rubin architecture.

The customer list goes beyond Nvidia. AVC has worked with major hyperscalers including AWS, Google, Meta, and OpenAI, supporting both GPU designs and custom ASIC chips.

That second category is where the company sees the biggest change ahead. AVC anticipates that ASIC revenue will surpass GPU revenue in its server segment in 2027.

ASICs are chips designed for one specific job, rather than general-purpose graphics processors. Large cloud players build them in-house to run their own AI workloads more efficiently.