At a glance. Revenue barely moved sequentially. Profit did: gross margin 32.57%, EPS NT$24.37. Management's labels for the two years ahead were 2026, the ASIC first year and 2027, water cooling past 50% in the data center. Analysts asked about Google TPU, Trainium, Rubin and VR200. The voltage was never 800.
What changed this quarter
The operating rule showed up in the P&L. Q2 sales NT$49.12bn, +0.17% quarter on quarter, +66% year on year. Gross margin rose 2.8 points sequentially and 8.2 points year on year. First-half profit grew faster than first-half sales.
ASIC was promoted from a 2027 crossover to a 2026 year-name. GPU and ASIC both still need thermal and mechanical content; they are not a choice. The 2027 ASIC-over-GPU view was held.
VR200 cold plates were dated into Q3 revenue. A new plant is already in production against the VR programme.
The numbers
| Q2 2026 | Value | Change |
|---|---|---|
| Revenue | NT$49.12bn (~US$1.56bn) | +66% YoY, +0.2% QoQ |
| Gross profit | NT$16.00bn (~US$508m) | +121% YoY |
| Gross margin | 32.57% | +8.16pp YoY |
| Operating margin | 27.44% | +10.23pp YoY |
| EPS | NT$24.37 (~US$0.77) | +137% YoY |
First half 2026: revenue NT$98.16bn (~US$3.12bn), +85%; gross margin 31.17%; EPS NT$44.54 (~US$1.41), +142%. Servers and networking NT$64.92bn, +153%, 66.14% of sales versus 48.41% a year earlier.
Cash and bank deposits NT$77.72bn (~US$2.47bn). Liability ratio 68.07%. Inventory days 145, still below last year's 174. First-half operating cash inflow NT$26.29bn (~US$835m); free cash flow NT$19.18bn (~US$609m), nearly 3x.
Product mix, first half: thermal 62.98% (+96% YoY), chassis 20.44% (+134% YoY).
Capex about NT$15bn in 2026, higher in 2027, funded from cash flow and bank lines, no extra raise planned. Expansion is concentrated in Vietnam.
NVIDIA 800V read-through
Still no 800 V. The cooling block on NVIDIA's diagram is what moved.
- Water-cooling penetration in data centers is guided above 50% in 2027. That is a market claim, not an Auras share claim.
- VR200 cold plates start contributing in Q3 2026. Rubin cold plate, manifold and chassis questions were declined; the standing answer is "main source on the important programmes."
- Blackwell cold plates were described by an analyst as a five-supplier field. Auras would not give a share, only that design-through-production stability is how NVIDIA allocates.
- Google TPU was asked by name. The answer was the year-labels: 2025 the water-cooling first year, 2026 the ASIC first year, with Auras on the programmes that ramp this year and next as a main supplier. Same pattern on AWS Trainium 3 (air) versus Trainium 4 (liquid) — liquid keeps rising, and Auras says it has been the main supplier since liquid started.
- CPO liquid cooling is in house, guided to ship in 2027. LPU was not answered as a named product.
- Two-phase cooling still has a PhD team. Performance beats single-phase; customers still pick single-phase for the next generation on TDP and reliability. Current kits already handle 3,000 W+; the next step is more of the same loop, chillers, fluids or TIM, not a jump.
- CDU: internals and complete water-to-water or water-to-air systems both have production history. The customer decides whether Auras sells a system or a part; more of the investment is in parts.
Foxconn, in the same 2026 season, is raising self-made cooling content above 50%. Auras is the independent thermal house claiming the same cabinets from the other side.
Segments that moved
Servers and networking at 66% of the first half is the margin machine. Edge AI is described as smaller, more fragmented, and better-margin, with some customers buying both cloud and edge from Auras.
Chassis and racks rise with cabinet density — harder design, more value per cabinet, including slides and QDs. No product-line margin ranking was given.
Phone and tablet VC continues, but shrinks as a share because AI is faster.
Guidance
- Q3 2026 better than Q2; second half better than first half, timed on customer pull-in.
- No long-range EPS figure. A 2027 EPS of NT$150 was asked and declined.
- Water-cooling share of Auras's own sales is not disclosed. Projects mix cold plate, manifold, QD, mechanics and fans, so the books are kept by programme and customer, not by air versus water.
Management Q&A
Q: What is the Q3 and second-half 2026 revenue and gross-margin guide, and does the year climb quarter by quarter?
A: The prior outlook is held: more products enter mass production in the second half, so the second half should be better than the first, still subject to when customers pull in. More automation should help gross margin, and management remains optimistic.
Q: What were Q2 2026 air versus water-cooling sales weights, and how should the second half and next year be split?
A: Water-cooling revenue is not disclosed. Programmes often mix cold plate, manifold, QD, mechanics and fans, so the books are kept by programme and customer, not by air versus water. What management will say is that AI server's share of sales keeps rising.
Q: What is the VR200 cold-plate ship schedule, and why was it delayed?
A: Shipments still follow the customer's programme calendar; Auras said engineering, capacity and sales coverage give it confidence it can match whatever schedule the customer sets. The new plant is already in volume production on VR product, and Q3 starts to contribute revenue.
Q: Blackwell cold plate has five suppliers — what is Auras's share, and how does NVIDIA allocate orders?
A: Management would not comment on a named customer or programme and would not confirm that there are five houses. It said it remains a core supplier on the important ASIC and GPU accounts, and that design, development, qualification and production stability are what those customers use to split orders — Auras expects a main-supplier share on most of the important programmes.
Q: What is Auras's Rubin-platform penetration in cold plate, manifold and chassis, and how do Blackwell and Rubin gross margins compare?
A: It would not comment on a single product's gross margin. The company target is to be the main source on every customer programme.
Q: What share of the S customer's (read as Super Micro) cold plate and mechanicals does Auras hold?
A: It is holding main-supplier share. The exact split varies by account, but the status is described as major.
Q: What is the thermal design and ship progress on LPU, CPO, optics and Rubin Archer?
A: These are next-generation programmes at important customers, and Auras said it put in resources early across competing thermal options. It is confident that when they go to volume, Auras will be one of the suppliers.
Q: What is air-cooling penetration on Amazon Trainium 3, and how should Trainium 4 (liquid) be viewed?
A: The only quantitative comment was that the liquid-cooling share will keep rising. Since liquid cooling was introduced, Auras has been a main supplier at its major accounts — not only one customer — and it expects to keep that.
Q: What thermal content is shipping into Google TPU, and what does that mean for later years?
A: Again, liquid-cooling penetration keeps rising. 2025 was called the first liquid-cooling year and 2026 the first ASIC year, with many customers' ASIC programmes entering production or volume over this year and next; Auras said it is on those programmes as a main supplier.
Q: ASIC was previously said to have a chance of passing GPU in 2027 — what is the thermal versus chassis split inside that ASIC book?
A: That split is not tracked. ASIC and GPU are not an either/or: both platforms need thermal and mechanicals, power and rack density keep rising, and Auras expects to ship into both.
Q: How much do product lines expand in the second half of 2027 versus this year's second half, and what is the cold-plate and chassis capacity plan?
A: Capacity keeps expanding, mainly in Vietnam. Detailed tool counts are still being planned and were not shared; growth is meant to follow customer demand.
Q: Has the gross-margin ranking across product lines changed?
A: Management would not rank individual product margins. Profit is the priority: Q2 revenue was flat versus Q1 while gross margin and profitability rose, which it offered as proof that mix is managed for profit, not for revenue growth for its own sake.
Q: What is the two-phase (immersion) development status and bottleneck, and when will customers adopt it?
A: A PhD-level team is on two-phase, and progress is described as decent; on a like-for-like basis two-phase outperforms single-phase. For the next generation, customers still judge single-phase liquid cooling the better fit after weighing TDP against reliability; Auras is discussing with CSPs where two-phase would actually be used.
Q: At 3,000–5,000 W chip power, what else besides two-phase is in test, and how can rack-level cooling be raised?
A: Auras can already offer 3,000 W+ solutions and claimed no physical TDP ceiling at current technology. Whether that is stronger single-phase, two-phase, a chiller, a different rack architecture, a different coolant or TIM depends on each programme's system limits; bare-die packages, metal TIM and flow-rate changes are already being used to push the envelope. Thermal change is described as stepwise, not a sudden one-generation jump.
Q: What is the growth case for chassis and racks, and how is mechanics gross margin moving?
A: As rack density rises, mechanical specs rise with it: today's chassis has to carry cold plates, inner manifolds and fans, so structure, airflow and serviceability all get harder and value per rack goes up. Single-product gross margin was not given; management said it should keep getting better, and the chassis outlook is described as very optimistic, growing with thermal.
Q: What is the Edge AI opportunity?
A: Auras already ships Edge AI product. Cloud AI is concentrated in a few large programmes; Edge is more fragmented but better margin, and some customers buy both cloud and edge from Auras.
Q: The market worries that CSP AI returns cannot keep up with capex — how does Auras read that?
A: Management quoted TSMC's chairman: "We believe AI is real." Customers are still adding money, people and resources, so the AI trend is unchanged.
Q: What will phone and tablet vapour chambers contribute in 2026 and 2027?
A: VC work continues, but AI is growing faster, so VC's share of sales will be relatively smaller. Besides the existing phone customer, other accounts are in discussion.
Q: How does data-center liquid-cooling penetration change next year?
A: Penetration keeps rising. For 2027, management said it should exceed 50%, without a more precise figure.
Q: What is the chassis versus rack outlook?
A: Auras describes itself as a total thermal-and-mechanical supplier and a one-stop shop: fans, heatsinks, cold plates, rack manifolds, chassis, racks, slides and QDs move together as programmes iterate. It is very confident that mechanicals will grow with thermal over the next several years.
Q: What is the capex and investment plan for 2026 and 2027?
A: 2026 capex is about NT$15bn; 2027 capex will be higher. Operating cash flow and bank lines are enough for the current expansion, so no other fundraising is planned for now; spend is still tied to actual customer programmes, and plants are added when there are orders.
Q: What is the CPO and LPU liquid-cooling ship schedule and mix?
A: CPO work is underway, with shipments expected to start in 2027, and Auras is confident it will be on the solution at mass production; the mix depends on how much CPO each customer's system uses. It would not comment on LPU timing as a single product or customer.
Q: What is the EPS outlook, and is NT$150 next year possible?
A: The company does not give long-range financial forecasts, citing the number of programmes and customers behind more than NT$200bn of sales. The only near-term comment was that Q3 2026 should be better than Q2.
Q: What is the CDU plan and the longer-term target?
A: Auras can supply both CDU internals and complete systems, and already has volume on water-to-water and water-to-air. Strategy follows the customer's definition — system if they treat it as a system product, components if they treat it as a part — and most of the effort today is on components.
Disclaimer
English notes on Auras Technology's investor conference of 12 August 2026, covering Q2 2026. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.