Thermal pads are excellent for things like GPU backplates, VRM heatsinks, RAM heatspreaders, etc. I've used StarTech thermal pads for this purpose. My favourite application is to use them as an anti-vibration/anti-shock part stabilizer (which also happens to have thermal conductivity, for added gravy) inside laptops. Silicon-gel types have slightly higher bulk thermal conductivity. Foamy-rubbery types are instead easier to work with since they can be cut down (or shaved/thinned) as needed for each application. Once you stick one on it stays stuck, removing it usually rips it apart and leaves a sticky adhesive residue on the part.
They would work on a CPU, but offer suboptimal thermal conductivity compared vs thermal pastes/greases. They are usually "squishy" or compressable so putting them under a tightly-clamped CPU heatsink is possible, a lot of junky pre-built consumer computers routinely use foamy thermal pads for this purpose. But I expect that enthusiasts (and, really, pretty much anyone who's even heard of Arctic Silver) would be using a proper TIM for their CPUs, whether it be an Arctic Silver product or not. People often forget that the idea is not to keep stuffing the gap with as much TIM as possible, it is to fill the gap with exactly the minimum amount of TIM that will transfer heat between the mating surfaces better than air. I think Arctic Silver expects their customers to understand these pads would work but are far from being the smartest option available for CPU installation, unless you just need to get grandma's busted old Celeron working again.
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