IT + CE
Cooling module maker gearing up for 5G handset market boom
Aaron Lee, Taipei; Jessie Shen, DIGITIMES

Asia Vital Components (AVC), which specializes in thermal solution products, expects demand for smartphones to boom when 5G devices become commercially available.

AVC has shifted its thermal product focus to handset use, said the company, adding that demand for 5G smartphones is set to surge. AVC has long focused on PC- and notebook-use thermal solutions.

Meanwhile, AVC will be improving the cost structure of its system assembly and chassis making business through optimizing automation equipment, the company continued. AVC expects its overall profit increase to outperform revenue growth this year.

AVC reported consolidated revenues grew 7.2% to NT$29.07 billion (US$941.1 million) in 2018. Of the total revenues, sales of its thermal parts accounted for 58% followed by its system assembly business with 20% and chassis revenues with 16%. AVC also provides peripheral products such as camera modules and bearings, which account for the remaining 6%.

AVC has reportedly obtained bearings orders for Huawei's new foldable smartphones. Market watchers expect AVC to see revenues generated from the orders remain insignificant this year.

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