"Cooling module maker Auras Technology expects its third-quarter-2018 revenues to grow 15-20% sequentially with gross margin to also increase to 14-16%, up from second-quarter's 10%, thanks to robust demand for server and graphics card cooling solutions, according to company chairman Steven Lin.
Lin is also optimistic about the upcoming demand for smartphone cooling solutions as smartphones with 5G network support could consume up to 10-15W of power and generate a lot heat.
For this type of cooling need, the traditional graphite sheet solutions are able to dissipate heat via graphite's high thermal conductivity, but they are not able to decelerate the heat generation.
Heat pipes and vapor chambers are the most commonly use cooling solutions and vapor chambers' better heat dissipation ability has made the solution a popular design choice among smartphone vendors for their 5G devices, said Lin, adding that China-based Huawei is the most aggressive vendor adopting vapor chambers for its 5G smartphones.
However, vapor chambers are 300-500% more expensive than heat pipe solutions and therefore most vendors will only adopt the solution for their high-end 5G smartphones. With the 5G network estimated to begin operation in 2020, Lin expects vapor chamber demand to begin increasing in the second half of 2019.
As for competitions, Auras has advantages in technology, allowing it to be able to produce vapor chambers with a thickness of only 0.4mm.
Lin also noted that many server vendors have begun adopting Intel's Purley platform for their new systems in the third quarter and expects the platform to achieve a penetration rate of over 50% during the period.
Auras is expected to see rising demand for heat pipe solutions from the server industry in the third quarter as vendors are able to efficiently dissipate heat using vapor chambers for systems adopting Intel's previous-generation Grantley platform, but for the Purley platform, vendors are required to use heat pipes due to the platform's larger size.
As for Intel's next-generation Whitley server platform, which is estimated to be released in 2020, Lin expects demand to grow more significantly.
Nvidia is expected to unveil its new GPUs at the end of August and a new wave of demand for next-generation graphics cards is expected to benefit Auras' performance as demand from the gaming market is still growing strongly, Lin said."