At a glance. Q3 set records on sales, gross margin, operating margin and EPS as water cooling reached 35% of the company, up from 12% in 2024. Full-year 2025 water mix is now guided at 35%, then above 55% in 2026, with servers at 72%. GB300 and MGX cold plates were the Q4 volume story. The voltage was never 800.
What changed this quarter
Water cooling became a third of the P&L. Mix by quarter: 12% in 2024, 17% in Q1, 23% in Q2, 35% in Q3. That mix is what management credits for the margin step-up.
A lid business started. A heat-spreader / lid line, three years in the making, passed a US chip-maker qualification in Q2 2025 and began shipping for PC and server CPUs. It is the process proof for a later microchannel lid.
2026 is an ASIC-and-Thailand year. Existing CSP accounts converting their own ASICs from air to liquid, or launching liquid-native ASICs, are named as the main 2026 growth. Thailand phase 2 is being built for 2H 2026 and 2027 demand.
The numbers
| Q3 2025 | Value | Change |
|---|---|---|
| Revenue | NT$5.96bn (~US$189m) | +12.3% QoQ, +41.2% YoY |
| Gross margin | 29.8% | vs 26.1% in Q2; a quarterly record |
| Operating margin | 16.7% | vs 11.9% in Q2 |
| EPS | NT$10.66 (~US$0.34) | a quarterly record |
First nine months 2025: revenue NT$15.68bn (~US$498m), +34.5%; gross margin 27.9% (vs 26.6% a year earlier and 23.4% in 2023); EPS NT$18.13 (~US$0.58). Gross margin has been climbing about 2–3 points a year since 2022, attributed to the water mix.
NVIDIA 800V read-through
No 800 V. Same cooling block as Auras: cold plate, manifold, QD, CDU.
What this call actually adds to that file:
- Fanless trays. Asked about NVIDIA cutting liquid-cooling prices, management reframed it as cost-down. On Vera Rubin, the cold plate may be cheaper, but a fanless cabinet kills internal airflow, so the internal manifold has to get larger and more complex. Cold plate plus internal manifold, it said, does not fall in value; the compute tray's thermal content does not go down.
- Where the water dollar sits in 2025: cold plate + internal manifold 50–55%, rack manifold 40–45%, CDU about 5% (in-row CDUs not yet at scale). Sidecar liquid-to-air CDUs are in the book; liquid-to-liquid in-row CDUs were described as about to enter production.
- Self-made content. Cold plates and rack manifolds 100%. In-house QDs are a ~30% attach target, not a 100% swap of customer-specified parts, already designed into GB300 and ASIC.
- Share claims, company-stated: cold plates about 10% in 1H 2025 after a late GB200 qualification, aiming toward 20% as GB300 ramps and customers dual-source; rack manifolds above 30%.
- Capacity: rack manifolds just over 1,000 sets a month in Taiwan, Thailand designed for 3,000; cold plates Guangzhou + Thailand 300,000+ plates a month, or 100,000+ sets at three plates per GB300; CDUs 500 a month in Taiwan, targeting 1,000 by year-end.
- Q4 2025 is guided positive on GB300 volume and the start of MGX-platform cold-plate shipments.
Auras, in 2026, called itself a core supplier on GPU and ASIC trays and would not give programme shares. AVC is the other independent thermal house putting numbers on cold-plate share, manifold share and a fanless-tray ASP defence. Neither named 800 V.
Segments that moved
| End market | Q3 2025 share | Notes |
|---|---|---|
| Servers | 60% | Water 35%, air 25%; guided to 72% of 2026 sales |
| PC | 27% | Mix still moving toward gaming notebooks |
| VGA | 11% | Down sequentially; no new product in Q3 |
| Other | 2% | Automotive, after phones were exited |
Guidance
- Q4 2025 positive, on GB300 and MGX cold plates.
- Full-year 2025 water mix 35% of sales (the May call had said 40–50%).
- 2026 water mix above 55%; server mix 72%. ASIC liquid programmes at existing CSPs are the named engine. Fanless designs are expected to pull more parts (memory, power shelves) onto the loop and raise content per tray.
- Thailand phase 2: building complete end-2025, tools in 1H 2026, for 2H 2026 and 2027.
Management Q&A
Q: What is the outlook for thermal solutions, and what is AVC's competitive edge?
A: The industry path is from air to liquid. AVC's stated edges are an existing customer base, staying on thermal rather than spreading into chassis or fans, a complete offering from cold plate and manifold through CDU, and an early lid / vapor-chamber position that helps the next integration step.
Q: How is the Thailand plant running, and what is the plan?
A: Phase 1 is full, making lids, server air- and water-cooling modules, and notebook product. Phase 2 is being built because water-cooling penetration rises fast after 2026, and ASIC programmes will tighten capacity further. The building is due at end-2025, with tools in 1H 2026, for 2H 2026 and 2027 demand.
Q: What is the self-made ratio on QDs, cold plates and manifolds?
A: Cold plates and rack manifolds are 100% in-house. QDs are still specified by some customers, so the aim is not 100% replacement but raising in-house QD attach to about 30%, for cost and lead time. In-house QDs are already going into GB300 and ASIC programmes.
Q: What is the effect of NVIDIA cutting prices on liquid-cooling products?
A: Management would call it cost optimisation, not a haircut. On the next-generation Vera Rubin platform the cold plate itself may see price pressure, but a fanless rack removes internal airflow, so the internal manifold has to become larger and more complex to split the flow. Adding cold plate and internal manifold, the price does not fall; because the design is harder, thermal content on the compute tray does not go down.
Q: What is the mix inside the water-cooling line?
A: Taking 2025 water revenue as 100%: cold plate + internal manifold about 50–55%, rack manifold about 40–45%, CDU about 5%, because in-row CDUs have not yet shipped at scale.
Q: What is the progress on microchannel cold plates and microchannel lids?
A: A microchannel cold plate is an upgrade of today's plate. A microchannel lid integrates the cold plate with the heat spreader. AVC began volume shipments of PC and server lids in Q2 2025, which it cites as process proof for a later integrated-lid design.
Q: What share does the company claim in each product?
A: Cold plates were about 10% in the first half of 2025 after a slightly late GB200 qualification; as GB300 ramps and customers spread the chain, the target is to move toward 20%. Rack manifolds, having entered earlier, are held above 30%.
Q: Where is capacity today, and how much room is there to raise it?
A: There is room; Thailand phase 2 is the lever. Monthly capacity now: rack manifolds just over 1,000 sets in Taiwan, Thailand designed for 3,000; cold plates Guangzhou plus Thailand 300,000+ plates, or 100,000+ sets at three plates per GB300; CDUs 500 a month in Taiwan, targeting 1,000 by year-end.
Q: Are there new ASIC customers?
A: Most are existing customers building their own compute. Some of those ASIC products are converting from air to liquid; some new ASIC programmes are liquid from the start. Long server and notebook relationships are how AVC says it picked up the thermal work.
Disclaimer
English notes on Asia Vital Components' investor conference of 25 November 2025, covering Q3 2025. 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.