The annual production capacity of the thermal plate is increased by 150 million pieces, AAC TECH (02018) locks in the "leading" AI heat dissipation.

Understanding that, at the beginning of 2026, AAC TECH's addition of 1.5 billion ultra-thin VC hot plates for mobile phones has sparked strong industry attention. The authoritative source of this news can be traced back to the relevant project announcement from Changzhou City. According to industry statistics, AAC TECH currently holds over 50% of the domestic high-end mobile phone VC market share and is the core heat dissipation supplier for the iPhone 17 Pro series. The heat dissipation product shipments are expected to reach 1.5 billion units by 2025. With the addition of the capacity of 1.5 billion units, their scale advantage will double, and they are expected to dominate half of the global smartphone VC market in the future. Against the backdrop of the comprehensive outbreak of AI terminals, this expansion of production also conceals deep strategic considerations: AAC TECH is locking in its position as the "leader" in AI device heat dissipation through capacity expansion, highlighting its strategic upgrade as a core supplier of AI infrastructure. From "component supplier" to "ecosystem builder": The invisible cornerstone of AI hardware In the industry wave of the outbreak of AI terminals, AAC TECH has long since moved beyond being a single component manufacturer. For example, when you open Alibaba's Xuan AI Glasses S1, the acoustic components come from AAC TECH; the vibration feedback on Touch Bean AI phones is sourced from its linear motor technology; after acquiring Dispelix, the next generation XR devices will incorporate optical products such as light waveguides with the "AAC TECH Manufacturing" mark. Their ultra-thin hot plates have become the key to the heat dissipation performance of the iPhone 17 Pro series. From the core of "sound, light, touch" interactive to structural heat dissipation components, AAC TECH has built a product matrix covering key links in AI devices, becoming the "standard" supplier for the global mainstream AI ecosystem. However, in terms of performance volume, AAC TECH's comprehensive layout in the field of heat dissipation has led to its explosive growth. The contradiction between the high performance and slimness of AI terminals is pushing heat dissipation from "basic assurance" to "performance requirement." Flagship smartphone chips with large local models have a heat flux density exceeding 50W/cm, three times higher than traditional chips; the near-eye display module of XR devices can easily exceed 60C due to the integration of computing chips, causing the traditional graphite heat dissipation solution with a thermal conductivity efficiency of less than 150W/(m.K) to become ineffective. AAC TECH's heat dissipation product line precisely addresses market pain points and has risen rapidly: in 2024, their heat dissipation product sales exceeded 3 billion yuan, expected to surpass 12 billion yuan in 2025, achieving over three times growth in one year, becoming the core engine for meeting the demand for increased power density in AI terminals. Technological moat: Building competitive barriers with a multi-scenario product matrix The explosive growth of AAC TECH's heat dissipation business is due to the technological "moat" they have built. By examining the recent product updates from AAC TECH, they have developed many products that have rewritten industry standards: the first ring-shaped VC in the market, the first dual-chamber 3D combination VC, the first nano-fluid 3D VC, and the first aluminum copper flat VC, among others. Among these, the ring-shaped VC increased the heat dissipation capacity by 300% compared to traditional VCs, the dual-chamber 3D combination VC improved heat dissipation efficiency by 300%-400% compared to traditional solutions, and the nano-fluid 3D VC, through material innovation, perfectly meets the heat dissipation requirements of microdevices like AR glasses. Their independently developed flexible thermal conductivity material has a thermal conductivity coefficient far exceeding the industry standard; their full-process in-house production model builds deep barriers: mastery of various material production processes from copper, stainless steel to aluminum-copper composites, combined with MES production execution systems for full-process traceability, results in a product yield 15 percentage points higher than the industry average and a significant reduction in unit production costs. This dual advantage of "technological innovation + Lean production" has allowed AAC TECH to firmly establish itself in the consumer electronics heat dissipation market: holding over 50% of the domestic high-end mobile phone VC market share, deeply embedded in flagship models from brands like Xiaomi, Redmi, OnePlus, and becoming the core heat dissipation supplier for the iPhone 17 Pro series. Capacity expansion: Market layout behind the addition of 1.5 billion units Public data shows that AAC TECH's heat dissipation business has shown strong growth in recent years. The compound annual growth rate of VC hot plate shipments from 2020-2025 is expected to exceed 90%, with shipments reaching 1.5 billion units by 2025. With the addition of this capacity of 1.5 billion units, their annual planned capacity has exceeded 3 billion units. The release of capacity forms a positive loop with key customers. In October 2025, Apple COO Sabih Khan visited AAC TECH's Changzhou factory and highly praised the automated production line for the exclusive VC hot plates of the iPhone 17 Pro series. The tooling developed jointly by Apple and AAC TECH not only improves logistic efficiency by replacing traditional plastic trays but also reduces plastic waste; carbon nanocoating technology increases the wear resistance of graphite tooling by 50% and doubles its lifespan; the use of 100% recycled copper in major production processes integrates environmental considerations into the production process. In the water injection process, industrial cameras are used for positioning and ultra-fine needle injection in combination with vacuum treatment to ensure high vacuum levels in the hot plate cavity, ultimately achieving temperature control between the hot and cold ends to be below 2C, far superior to the industry standard of 5C. For the industry, what is even more noteworthy is the pace of product penetration: industry analysis suggests that in the future, various terminals such as the standard version of the iPhone, tablets, and laptops are expected to fully adopt VC hot plates. This not only signifies the downward penetration of VC products from flagship models to the mid-range market but also means the realization of cross-category scale expansion, further opening up growth space in the heat dissipation business. Scene extension: Comprehensive coverage from terminal to AI infrastructure If the addition of 1.5 billion units of capacity is AAC TECH's "present," the scene extension defines its "future." In the field of AR/VR devices, AAC TECH has developed miniaturized passive heat dissipation components and low-noise active heat dissipation modules to solve localized heating issues during long-term wear, enhancing user immersion experiences. In the field of humanoid Siasun Robot&Automation, focusing on dispersed heat sources such as joint motors and control chips, AAC TECH provides modular heat dissipation solutions compatible with the flexible motion structure of Siasun Robot&Automation, ensuring device stability during complex movements, with multiple rounds of sample testing already conducted with customers. Beyond consumer electronics, smart cars have become a new breakthrough: AAC TECH is focusing on long-term heat dissipation needs for key components such as vehicle chips, battery packs, and LiDAR, launching customized liquid cooling systems and passive heat dissipation components that adapt to the harsh conditions of vehicle environments like temperature variations and vibrations. They are currently collaborating with car manufacturers to advance joint development efforts. This comprehensive layout aligns with the industry trends. BCC Research predicts that the global heat dissipation market will surpass $26.1 billion by 2028, with demand extending from consumer electronics to smart cars, humanoid Siasun Robot&Automation, data center liquid cooling, and other areas. The competitive landscape of advantages and challenges Despite significant advantages, AAC TECH faces a challenging road ahead. Companies like Qualcomm from Taiwan, Nichias from Japan, and Suzhou Tianmai Thermal Technology, all have strong competitive strengths, each with technical accumulations and advantages in segmented markets, forming a differentiated competitive landscape. Additionally, the iteration of technological routes also brings uncertainty: with the heat flux density in AI servers exceeding 100W/cm, the penetration rate of liquid cooling technology in AI data centers reached 33% in 2025, with plate-style liquid cooling becoming the mainstream solution. While not completely replacing VC hot plates, this does pose higher performance requirements for chip-level heat dissipation components. However, according to industry sources, AAC TECH has proactively laid out the liquid cooling raceway in data centers, focusing on developing core components such as plate-style liquid cooling modules and CDUs (coolant distribution units). Their core strategy involves embedding VC hot plates as the core of chip-level temperature leveling, forming a "chip-VC-plate-liquid cooling cycle" multi-layer heat dissipation architecture, creating a "VC + liquid cooling" composite solution to meet the heat dissipation needs of AI servers, with related businesses proceeding in an orderly manner with leading data center companies. In this multidimensional competition, AAC TECH has taken the lead with the advantage of "product matrix + production scale + ecosystem binding." However, whether they can continue to lead depends on their continuous breakthroughs in liquid cooling technology iteration and the exploration of emerging scenarios. Just as the performance enhancement of AI terminals has no end, the competition in the heat dissipation race is forever on the road ahead.