Taiwan-based cooling module suppliers are generally optimistic about their operations in 2021, judging from an anticipated surge in demand for 5G and AI related applications.

Nidec Chaun-Choung Technology (CCI) chairman Junichi Nagai pointed out that demand for cooling modules has been picking up especially from 5G-related applications. The company's new plant in Vietnam will begin operation in March 2021 and contribute revenues starting the second quarter of 2021. Initially, the new capacity will be used to produce cooling modules for notebooks and servers.

Nidec CCI reported consolidated revenues of N$2.44 billion (US$85.66 million) for the third quarter of 2020, hitting a new high, and expects its sales in the fourth quarter to rise further. The company's October consolidated revenues also increased 9.14% on year to come to NT$868 million.

Nidec CCI has also seen some clients' orders being deferred to the first quarter of 2021 due to component shortages and should benefit the company's performance during the period.

Auras has announced consolidated revenues of NT$1.23 billion for November, up 30.5% on year to reach the highest-ever monthly level. Auras' third-quarter 2020 revenues were driven by demand from notebooks, graphics cards and servers and their revenue contributions in the fourth quarter are expected to be stronger.

In addition to the three major product lines, Auras' sales in 2021 will also benefit from 5G handsets. Auras sales in 2020 have been boosted mainly by notebooks and graphics cards due to the releases of new GPUs and the stay-at-home economy.

Power Logic that focuses mainly on graphics card cooling modules, saw November consolidated revenues arrive at NT$168 million, up 48.36% on year and also a new record, thanks to the releases of Nvidia's and AMD's new high-end GPUs.

Thanks to the stay-at-home economy, shipments of graphics cards and related cooling modules have been brisk, but the short supply of ICs and components still has deferred some of its cooling fan shipments to the first quarter of 2021, said Power Logic.

As Nvidia and AMD are set to release next-generation GPUs for mid-range to entry-level segments, Power Logic believes the new hardware will prompt consumers to upgrade their PCs and boost sales of its cooing fans.