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When people think of Taiwan’s AI industry, usually semiconductors come to mind. But many niche suppliers in areas like chip cooling are crucial for building increasingly powerful AI hardware. One such company is Asia Vital Components, which spoke to TaiwanPlus about how it co-designed and supplies liquid cooling solutions for Nvidia’s newest chips and reported US$4.3 billion in 2025 revenue as demand for AI data centers surged. It's just one of Taiwan’s hidden AI giants, lesser known firms that are quietly dominating valuable sectors of the global AI supply chain.

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00:01Data centers are loud.
00:04They're also hot.
00:06As AI chips get more powerful, getting rid of that heat becomes a big business of its own.
00:11In fact, some market analysts project the global data center cooling market will surpass 30 billion US dollars in 2026
00:18alone.
00:19Taiwan is at the center of that business.
00:21One of the companies riding the boom is Asia Vital Components, or AVC.
00:26Taiwan Plus met the company at its R&D center in New Taipei, where they told us just how hot
00:32AI chips can get.
00:33Our most cutting-edge AI chips generate up to nearly 2,000 watts of heat.
00:40If we take the power of a normal small kettle, that sits around 300 to 400 watts of heat.
00:47So you could boil five kettles worth of water with one chip?
00:51Yeah, that's the idea of it, yes.
00:54That kind of heat is why companies like NVIDIA turn to AVC, which Shun says co-designed and is a
01:00main supplier of NVIDIA's liquid cooling solutions in their newest AI chips, like the Blackwell series.
01:06If you look inside NVIDIA's newest AI chip, the Blackwell's, you'll see these.
01:11Now, these copper cold plates sit directly on top of the chips themselves.
01:16Liquid runs through the copper, through these hoses, and draws heat away from the chips much more than just air
01:22alone would.
01:23In large data centers, that hot liquid coolant is sent to a heat exchanger.
01:27From there, the heat is carried to a unit on the roof, where it's released into the outside air.
01:32The coolant is then recirculated back through the system.
01:36Designing systems like that takes time, and every new generation of chips needs a custom cooling solution.
01:42AVC starts working with our customers on new projects about one to two years in advance.
01:48That really is what we need to give us enough time to develop the perfect solution for each of our
01:53customers.
01:54So right now, we're already in discussion of what the 2027 NVIDIA solution might look like.
02:00In designing products at their R&D center, the company tests new coolant arrangements, uses CT scanners to find production
02:08defects, and also tests its computer fans, which still make up a large part of their business.
02:14This soundproof room may look like I'm here to record my next hit single, but this recording studio is actually
02:20used to test noise levels for cooling fans like these.
02:23Both air and liquid cooling have seen big growth.
02:26ABC reported 4.3 billion U.S. dollars in revenue in 2025, a year-on-year growth of nearly 95
02:34percent.
02:35And the AI boom is clearly reflected in the company's stock price in Taiwan, which has jumped more than 1
02:40,600 percent since 2023.
02:44AVC does most of its manufacturing in China and Vietnam, where it's expanding its operations at a 40-hectare, $600
02:51million facility to meet the growing demand for AI data centers.
02:55And AVC isn't the only one expanding.
02:58Other Taiwanese companies like Delta, Cooler Master, and others are also getting in on Taiwan's AI boom.
03:05Most of your other competitors are also Taiwanese companies.
03:09Why do you think Taiwan has been able to be so successful in this particular space?
03:13If we look at global tech supply chain, Taiwan has the most mature, the most readily available supply chain.
03:20And therefore, it makes a lot of sense that the thermal players that are strongest are also the most deeply
03:25integrated in the supply chain.
03:27Industry experts agree.
03:29So, we can throw away from all the world.
03:32We can say that only Taiwan has a complete equipment supply chain, even in Japan, even in Korea.
03:40Cooling isn't the only niche field where Taiwanese firms are excelling.
03:44The country quietly dominates layer after layer of the AI supply chain.
03:49Many of these companies are worth millions or billions of dollars, but are virtually unknown outside the industry.
03:55One researcher who tracks the industry calls them Taiwan's hidden champions.
03:59From the computer, to the computer, to the computer, and to the PCB.
04:04And then there's a system.
04:06And then there's a system.
04:07And the heat, and the light, and the light.
04:08These are basically all the products that are going to be used in the future of AI.
04:14And in Taiwan, there are also some of these sports champions.
04:21But maintaining a lead isn't easy in such a competitive country.
04:25What's the next big thing in cooling from ABC's point of view?
04:28You know, what does the future look like in the next few years?
04:31Two-phase liquid cooling is what we're also very excited about.
04:35Which is the idea of you have a working fluid that has a very low boiling point.
04:43It'll boil on the chip, then come out as gas.
04:46And because the process of boiling absorbs what requires more heat, it becomes a more effective solution.
04:53And that's something that we're currently working on right now.
04:56AI technology keeps evolving, and so do the companies behind it.
05:00But as demand and profits keep growing, Taiwan's hidden giants are becoming harder and harder to ignore.
05:07Ryan Wu, Patrick Chun, Ai-Chi, and Chris Gorin for Taiwan Plus.
05:13What went the камAction to be a great solution though?
05:13If someone is being chosen, you could always find the casetoo of giving of what you need on.
05:14The field leader, you can't put your hands, you can't put it, like me, too.
05:14If you were in a positive way or not, you can't put it, like me, wouldn't really seem better to
05:14start.
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