Trade Resources Industry Views Notebook Cooling Fan Makers Expand Into The Cooling Module Assembly Business

Notebook Cooling Fan Makers Expand Into The Cooling Module Assembly Business

Taiwan-based notebook cooling fan makers such as Delta Electronics and Sunonwealth Electric Machine have recently expanded into the cooling module assembly business with some even starting to develop heat pipes to complete the supply chain, according to sources from cooling module makers.

Notebook Cooling Fan Makers Enter Module Assembly Industry

A cooling module is composed of cooling fans, heat pipes and heat sinks and in the past, Delta and Sunonwealth only supplied cooling fans to downstream cooling module makers. As the competition from China is growing strong, several cooling fan makers have decided to enter the module industry and have even established teams to compete for orders.

With the entry of cooling fan makers, the sources expect the cooling module industry to experience a wave of elimination in the next two years. Since cooling fan technologies are mostly protected by patents, downstream module makers are having trouble entering the cooling fan industry as a counter move.

With Delta's advantages over prices and ability to offer full-set solutions, notebook ODMs have started considering shifting orders to Delta.

Notebooks are currently still the main application for cooling modules with a volume of almost 200 million units each year. With notebook demand starting to stagnate in the past few years, many cooling module makers are turning to focus on non-notebook businesses.

Source: http://www.digitimes.com/news/a20140616PD210.html
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Notebook Cooling Fan Makers Enter Module Assembly Industry