In early 2026, AAC TECH's (02018) project to add an annual capacity of 150 million ultra-thin VC (Vapor Chamber) heat spreaders for smartphones has attracted significant industry attention, with the authoritative source of this news traceable to a relevant project announcement released by Changzhou City. According to industry statistics, AAC TECH currently holds over 50% of the domestic market share for high-end smartphone VCs and is a core cooling supplier for the iPhone 17 Pro series. With its cooling product shipments expected to reach 150 million units in 2025, this new addition of 150 million units in capacity will effectively double its scale advantage, positioning the company to potentially capture half of the global smartphone VC market in the future. Placed against the backdrop of the full-scale explosion of AI terminals, this capacity expansion harbors deeper strategic considerations: AAC TECH is leveraging this capacity boost to secure a "leading" position in the thermal management sector for AI devices, highlighting its strategic upgrade resolve as a core supplier of AI infrastructure.
AAC TECH has long moved beyond the identity of a single-component manufacturer amidst the industry wave of AI terminal proliferation. Open Alibaba's Quark AI Glasses S1, and you will find its acoustic components sourced from AAC TECH; feel the haptic feedback on the Doubao AI phone, and it originates from its linear motor technology; following the acquisition of Dispelix, next-generation XR devices will also bear the mark of "Made by AAC TECH" for optical products like waveguides. Its ultra-thin heat spreaders are crucial for the thermal performance of the iPhone 17 Pro series. From core "acoustic, optical, and tactile" interactions to thermal structural components, AAC TECH has built a product matrix covering key aspects of AI devices, becoming a "standard" supplier for mainstream global AI ecosystems.
However, judging by financial performance, this full-chain layout is first experiencing explosive growth in the thermal management sector. The paradox of high performance and slim form factors in AI terminals is pushing thermal management from a "basic safeguard" to a "performance necessity"—flagship phone chipsets equipped with on-device large models see heat flux density exceeding 50W/cm², a threefold increase over traditional chips; the near-eye display modules of XR devices, integrated with computing chips, can easily see local temperatures surpass 60°C, rendering traditional graphite cooling solutions with thermal conductivity below 150W/(m·K) ineffective. AAC TECH's cooling product line precisely addresses these market pain points and is rising rapidly: its cooling product sales exceeded 300 million yuan in 2024 and are projected to surpass 1.2 billion yuan in 2025, achieving over threefold growth within a year, making it a core engine meeting the rising power density demands of AI terminals.
The explosive growth of AAC TECH's thermal business benefits from the technological "moat" it has built. Reviewing its recent product launches reveals several industry-standard-redefining products: the market's first annular VC, first dual-chamber 3D composite VC, first nano-fluid 3D VC, and first aluminum-copper flat-plate VC. Among these, the annular VC's cooling capacity is 300% higher than traditional VCs, the dual-chamber 3D composite VC improves thermal efficiency by 300%-400% compared to conventional solutions, and the nano-fluid 3D VC, through coolant innovation, perfectly suits the cooling needs of micro-devices like AR glasses. Its self-developed flexible thermal interface materials boast thermal conductivity far exceeding mainstream industry standards; furthermore, its full-process in-house manufacturing model builds a deep barrier: mastery of mass production processes for various materials like copper, stainless steel, and aluminum-copper composites, combined with full-process traceability via MES systems, results in product yield rates 15 percentage points higher than the industry average and significantly reduced unit production costs. This dual advantage of "technological innovation + lean production" has solidified AAC TECH's position in the consumer electronics cooling market: it holds over 50% market share in domestic high-end smartphone VCs, with products deeply embedded in flagship models from brands like Xiaomi, Redmi, and OnePlus, and it serves as a core cooling supplier for the iPhone 17 Pro series.
Public information indicates strong growth in AAC TECH's thermal business in recent years. The compound annual growth rate for VC heat spreader shipments from 2020 to 2025 is projected to exceed 90%, with 2025 shipments expected to reach 150 million units. Following this new capacity addition of 150 million units, its annual planned capacity will exceed 300 million units. Capacity release forms a positive feedback loop with key clients. In October 2025, Apple COO Sabih Khan specifically visited AAC TECH's Changzhou factory, praising the automated production line for the exclusive VC heat spreaders for the iPhone 17 Pro series. The cartridge fixtures co-developed by Apple and AAC TECH not only replace traditional plastic trays to improve logistics efficiency but also reduce plastic waste; carbon nano-coating technology enhances the wear resistance of graphite fixtures by 50% and doubles their lifespan; the use of 100% recycled copper materials in key production stages integrates environmental理念 directly into the manufacturing source. During the water injection and degassing stage, industrial camera positioning combined with ultra-fine needle water injection and vacuum processing ensures high vacuum levels within the vapor chamber cavity, ultimately achieving a temperature difference between hot and cold ends controlled below 2°C, far superior to the industry standard of 5°C.
For the industry, its product penetration trajectory is even more noteworthy: industry analysis suggests that future iPhone standard models, tablets, and laptops, among other device categories, are expected to widely adopt VC heat spreaders. This not only signals the downward migration of VC products from flagship to mid-range markets but also indicates cross-category规模化 expansion, further unlocking growth potential for the thermal business.
If the 150 million unit capacity addition represents AAC TECH's "present," scenario extension defines its "future." In the AR/VR设备 field, AAC TECH has developed miniaturized passive cooling components and low-noise active cooling modules to address localized heating during prolonged use, enhancing user immersion. In the humanoid robot sector, targeting distributed heat sources like joint motors and control chips, AAC TECH provides modular thermal solutions compatible with the flexible mechanical structures of robots, ensuring device stability during complex movements, with multiple rounds of sample testing already conducted with clients.
Beyond consumer electronics, smart vehicles represent a new breakthrough: AAC TECH focuses on the long-term cooling needs of key components like automotive chips, battery packs, and LiDAR, introducing customized liquid cooling circulation systems and passive cooling structural parts suited to the harsh operating conditions of high/low temperatures and vibrations in vehicular environments, currently advancing joint development with automakers. This all-scenario layout aligns with industry trends. BCC Research predicts the global overall thermal management market will exceed $26.1 billion by 2028, with demand extending from consumer electronics to smart vehicles, humanoid robots, data center liquid cooling, and other areas.
Despite its advantages, the path ahead for AAC TECH is not without challenges. Competitors like Taiwan's Auras Technology, Japan's Futaba Corporation, and Suzhou Tianmai possess strong competitive strength, each with their own technological积累 and advantages in niche markets, creating a landscape of differentiated competition. Furthermore, iterations in technology pathways introduce uncertainty: as heat flux density in AI servers突破s beyond 100W/cm², the penetration rate of liquid cooling in AI data centers reached 33% in 2025, with cold plate liquid cooling emerging as the mainstream solution. While not fully replacing VC heat spreaders, this trend places higher performance demands on chip-level cooling components. However, according to industry sources, AAC TECH has proactively布局 the data center liquid cooling赛道, focusing on R&D for core components like cold plate liquid cooling modules and CDUs (Coolant Distribution Units). Its core strategy involves integrating VC heat spreaders as the chip-level temperature homogenization core into a multi-layer cooling architecture of "chip-VC-cold plate-liquid cooling cycle," forming a "VC + liquid cooling" composite solution to meet AI server cooling demands, with related business progressing orderly with leading data center companies.
In this multi-dimensional competition, AAC TECH has gained a head start leveraging its advantages in "product matrix + production capacity + ecosystem partnerships." However, whether it can maintain its leadership depends on continued breakthroughs in liquid cooling technology iteration and the exploration of emerging application scenarios. Just as the performance enhancement of AI terminals knows no bounds, the competition in the thermal management赛道 is also a perpetual journey.
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