At a glance. Server products — slides and liquid-cooling QDs — went from 5.3% to 36.3% of the company in one year. FY2025 EPS NT$31. Management claims it is a main quick-disconnect supplier on NVIDIA GB200 / GB300 Switch, and that Blackwell / Rubin cold-plate QDs are NVIDIA-decided. 2026 capacity targets: slides 350,000 sets a month, QDs 3 million pcs a month. The call never said 800 V.
What changed this quarter
The mix flipped. Foldable-phone hinges are still more than half of sales, but they are no longer the growth engine. Server revenue was NT$4.505bn, +936%, 36.3% of the group. Q4 gross margin 29.05% is what that mix looks like in a single quarter.
The QD claim was put on NVIDIA by name. GB200 / GB300 Switch QDs: main supplier, high share. B/R (Blackwell / Rubin) water-plate QDs: the supplier is chosen by NVIDIA. AWS and Google TPU QDs were still in qualification.
2026 was called a foldable-phone first year as well as an AI year. Apple is expected to launch a foldable; Huawei keeps up/down, left/right, outward-fold and a tri-fold. That is a second story. It is not the cooling story.
The numbers
| FY 2025 | Value | Change |
|---|---|---|
| Revenue | NT$12.414bn (~US$394m) | +51.61% YoY |
| Gross profit | NT$3.27bn (~US$104m) | +78.98% YoY |
| Gross margin | 26.34% | +4.03pp vs 22.31% in 2024 |
| Net income | NT$2.125bn (~US$67.5m) | +73.19% YoY |
| EPS | NT$31 (~US$0.98) | — |
| Q4 2025 | Value | Change |
|---|---|---|
| Revenue | NT$3.976bn (~US$126m) | +43.54% YoY, +11.5% QoQ |
| Gross margin | 29.05% | +9.85pp YoY |
| Net income | NT$752m (~US$23.9m) | +82.08% YoY |
| EPS | NT$10.96 (~US$0.35) | — |
Year-end cash NT$7.446bn (~US$237m). Current ratio 197.47%. Liability ratio 51%. Operating cash inflow NT$1.97bn (~US$62.5m). Investing outflow was described as capacity and tool replacement.
NVIDIA 800V read-through
No 800 V. Fositek is a quick-disconnect and slide name on the same liquid-cooled cabinet NVIDIA's 800 V architecture still has to keep at 45°C.
What this call actually adds to that file:
- Switch QDs. Company-stated main-supplier seat on NVIDIA GB200 / GB300 Switch, with a high share.
- Cold-plate QDs on B/R. Asked whether the Blackwell / Rubin water-plate QD supplier is NVIDIA-decided, management said yes.
- ASIC QDs. AWS and Google TPU fittings were in qualification. Vietnam automation is the production plan. QDs are a second-tier part: price and allocation are set by the end customer. Some volume goes through the chassis parent; some is customer-directed.
- Why QDs multiply. In a heavy, crowded AI chassis, modules have to come apart for service. Welding is "not practical." As liquid penetration rises, QD count per tray rises. UQD (chassis-to-rack, including floating joints) and MQD (smaller, inside the box) are different slots, not a single winner.
- Two-phase. Phase-change raises internal pressure, so the fitting needs more structural strength and is harder to mate. A new QD is being designed with the group.
- Slides are the other server dollar: higher load from the GB series, stronger materials into B/R, segmented travel because the chassis is packed. CSP ASIC slides (Amazon named) were still qualifying, with 2026 shipment if they pass.
Price: many QD vendors exist, but few pass large-account qualification. Besides Western names, Fositek said it is the main one shipping, capacity is tight, and price is holding.
Segments that moved
| Line | FY 2025 share | Notes |
|---|---|---|
| Foldable-phone hinges | 56.4% | From 82.6% in 2024; absolute dollar still up. Huawei share described as unchanged |
| Server (slides + QDs) | 36.3% | NT$4.505bn, from NT$435m; +936% |
| Notebook hinges | 6.4% | From 10.9% |
Stated gross-margin order: server > phone hinge > PC hinge. 2026 mix is expected to keep moving that way.
Guidance
- 2026. Optimistic. Under normal shipment, revenue, gross margin and profit are all expected to grow "a lot" versus 2025. Server is the engine; GB300, Blackwell, Rubin and CSP ASIC programmes are named. Capacity is described as severely short; customers keep asking for more.
- Capacity targets for 2026: slides 350,000 sets/month, QDs 3 million pcs/month. Vietnam automation is being installed.
- Phones. 2026 labelled a foldable-phone first year on an expected Apple launch. Huawei: up/down, left/right, outward-fold and tri-fold. Average hinge price seen flat versus 2025; MIM mix is the margin defence.
- Payout. Ratio expected similar to prior years, subject to the board. Capex is automation and tool replacement.
- No quarterly NT$ figures were given for 2026.
Management Q&A
Q: What is the 2026 Q1, Q2 and full-year view on revenue, profit and gross margin?
A: Global data-center build-out continues and liquid-cooling penetration is rising, so the company is constructive on 2026. Under normal shipment, revenue, gross margin and profit are all expected to grow a lot versus last year. Capacity is severely insufficient, and customers keep asking it to expand.
Q: How should 2026 product growth be ranked, and will revenue rise quarter by quarter?
A: The main engine is still server products. As GB300, Blackwell, Rubin and the various ASIC programmes go into production, operations should keep improving, and full-year revenue is expected to grow a lot versus last year.
Q: What is the phone-business growth target this year, and which foldables will Huawei launch?
A: Apple is expected to launch a foldable this year, which should bring a replacement cycle, so management treats 2026 as the foldable-phone first year and is constructive. Huawei's 2026 foldable range includes up/down, left/right, outward-fold and the distinctive tri-fold.
Q: Is Fositek still Huawei's largest hinge supplier, and how should long-term allocation be read?
A: Its supply share at Huawei has stayed fixed; Huawei adjusts the competitors. The set has gone from a US rival, to Taiwan and China names, and now — on harder products such as the tri-fold — back toward US firms. Fositek's own ratio, it said, has not been cut.
Q: How do phone-hinge price and gross margin change this year?
A: Average price is expected to be about the same as last year. The company will keep improving process, including a higher MIM share, and hopes gross margin can hold prior levels.
Q: Besides Huawei and Motorola, are there new phone customers?
A: The company is well known in the industry and keeps being asked to co-develop new programmes. No new name was given.
Q: What is the slide-revenue outlook this year?
A: AI demand is very strong. Management is very optimistic that server products will grow by a multiple.
Q: How do NVIDIA GB and B/R (Blackwell / Rubin) slides differ in load rating and design?
A: From the GB series onward, slide load ratings already went up. Into B/R, the company also changed materials to add strength. Because the AI chassis is crowded, the design adds segmented travel.
Q: What is the shipment progress on Amazon (AWS) ASIC slides?
A: Several CSP slide programmes are still in qualification. If they go smoothly, shipment is expected to start this year.
Q: What is Fositek's slide edge versus King Slide, Nan Juen and other peers?
A: Design is shared with its chassis-maker parent, so new ideas show up and overlap with other makers' designs is much lower. It also joins new programmes from the first pass, which lowers development difficulty.
Q: What will GB and ASIC QDs contribute this year, and what is the mix?
A: Same as slides: AI demand is very good, so server products are expected to grow by a multiple. No split between GB and ASIC QDs was given.
Q: How do GB and B/R QDs differ in design and usage?
A: The QD design lets cooling modules be modular and easier to service. As AI-server liquid-cooling penetration keeps rising, the number of QDs used will keep rising.
Q: What is the shipment progress on Amazon (AWS) and Google TPU QDs?
A: Both products are still in qualification. The Vietnam plant is installing automation and is expected to produce and ship smoothly this year.
Q: Is the B/R cold-plate QD supplier decided by NVIDIA?
A: Yes. The B/R QD supplier is indeed decided by NVIDIA.
Q: For AWS and Google ASIC QDs, is the part customer-specified or AB-source?
A: QDs are a second-tier qualified part. Price and supplier allocation are set by the end customer. Besides shipping to the parent, some volume is customer-directed.
Q: What is the QD price trend?
A: There are many suppliers, but few pass large-customer qualification. Besides Western vendors, Fositek is the main one shipping. Capacity is tight, so price is holding stable.
Q: How do QDs compare with welding, and will multi-QD designs become the mainstream?
A: In a complex, heavy AI chassis, connections between modules have to go through QDs; pure welding is not practical. Future designs will use more QDs, not fewer.
Q: What is liquid-cooling penetration on CSP ASICs?
A: CSPs are investing very actively in their own ASIC chips, and Fositek said it has those programmes. No penetration percentage was given.
Q: Please update QD and slide capacity plans in China and Vietnam.
A: This year's expansion targets: slides to 350,000 sets a month, QDs to 3 million pcs a month.
Q: What is the progress on other precision parts, such as reducers and gears?
A: The company is developing a differential planetary ball screw, has filed related patents, and is signing NDAs with Chinese and US customers.
Q: What are the payout ratio and capex plans?
A: The payout ratio is expected to be similar to prior years, subject to the board. This year's capex is mainly automation and replacing tools.
Q: How do UQD and MQD differ, and which becomes the mainstream?
A: UQD is mainly the connection between chassis and rack, including floating joints. MQD is smaller and fits inside a space-limited chassis. They are different use cases.
Q: What is the progress on micro QDs?
A: Several programmes are already sampling with customers, and related patents have been filed.
Q: How does a two-phase liquid-cooling QD differ from single-phase?
A: Two-phase cooling removes heat by boiling the fluid, which raises pressure inside the system. That demands higher structural strength from the QD, and mating / unmating is harder. Fositek is developing a new cooling system with the group to deal with those issues.
Q: What is the gross-margin ranking by product, and what is this year's margin and operating-margin outlook?
A: The order is server > phone hinge > PC hinge. As the server share rises and mix improves, overall margin is expected to be better than last year.
Q: How are hinges placed on foldable tablets and foldable notebooks?
A: Flexible displays are spreading, and applications are moving toward larger sizes. The company will keep developing new form-factors with customers.
Disclaimer
English notes on Fositek's investor conference of 5 March 2026, covering Q4 and full-year 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. Later 2026 calls in this archive failed transcription. For reference only; not investment advice.