Summary of Conference Call Notes Industry Overview - The AIDC (Artificial Intelligence Data Center) power supply system is transitioning to 800V HVDC, with solid-state transformers (SST) expected to become the final solution in the next 3-5 years [1][4] - Domestic companies like Shenghong Co. and Jinpan Technology are anticipated to leverage their technological advantages and existing overseas channels to penetrate the global supply chain [1][4] - The global capital expenditure growth is projected to exceed 50% in 2025, driving the adoption of HVDC over traditional UPS systems and SST over traditional HVDC+BRT [1][7] Key Trends and Developments - The application of green electricity in AIGC has significant potential, which may enhance its market space and impact power quality [1][6] - The UPS market is characterized by regional strengths and a fragmented competitive landscape, with the top three manufacturers holding about 40% market share, while the top three HVDC manufacturers currently dominate with approximately 90% market share, expected to decline to 60-70% [1][16][17] - The increasing power density in server power supplies is a clear trend, with domestic manufacturers like Oton and Meritec beginning to enter overseas supply chains [2][5][19] Market Dynamics - Domestic manufacturers have not yet fully penetrated the downstream market in onboard power supplies but are actively participating in the first-level UPS and second-level floating power supply segments [3] - The overseas market has been slow to adopt HVDC technology due to the stability of UPS systems and a lack of significant power increases in the industry [10] - However, the integration of renewable energy and the increase in cabinet power to over 200 kW are accelerating the introduction of HVDC technology in overseas markets [10][11] Technological Innovations - Delta's 800V HVDC solution utilizes a combination of HVDC modules, supercapacitors, and BPU to achieve direct current reduction within IT racks, facilitating the transition from 800V to a 50V system for data center servers [12][13] - SST is expected to see product rollout in 3-5 years, with decreasing semiconductor costs making it more competitive with traditional transformers [14] - The acceptance of SST technology is anticipated to be higher than current market perceptions due to its integration of traditional transformers with SSD and HVDC [14] Competitive Landscape - The competition in the UPS market is fragmented, while the HVDC market is more concentrated, with a significant share held by major internet companies [16][17] - The potential for HVDC technology in overseas markets is increasing, particularly as power requirements rise and existing supply systems approach their limits [11][18] Future Outlook - The market for second-level server power supplies is expected to continue growing, driven by increasing GPU and server power demands [18][19] - The development of power quality equipment is crucial for addressing harmonics and reactive power issues in data centers, with leading companies like Shenghong Co. expected to maintain their market share [20] - Chinese manufacturers are well-positioned to expand overseas, with a focus on first-level power supply innovations like 800V HVDC and SST [21][22]