Company and Industry Summary Company: Schneider Electric Key Points - **North America Business**: The rectifier modules related to Zhongheng are expected to enter the supply chains of Schneider and Eaton, with HVDC solutions being a focus for 2026-2027, primarily involving upstream manufacturers of Schneider [1] - **Market Share**: In 2026, the total expected capacity for ±400V and 800V in North America is projected to be 5GW, with a penetration rate of 16%. Schneider is anticipated to hold a 20% market share, while Megmeet and Zhongheng are assumed to each capture 50%, translating to approximately 500MW to 1GW in orders [1] - **Average Selling Price (ASP)**: In 2026, the supply of edge cabinet power modules in North America is expected to be influenced by Zhongheng's technology in transformers and medium-low voltage distribution panels, allowing entry from rectifier modules to complete cabinets (leasing projects) [1] - **Technology Trends**: From 2026 to 2028, the ±400V technology route is expected to account for nearly 50% of mainstream data centers, although it is considered a transitional solution. The future mainstream power supply method for data centers and microgrids is anticipated to be 800V SST [1] - **Importance of Power Electronics**: The significance of power electronics is expected to increase as the capacity of data centers grows, indicating a short-list of critical components [1] Additional Insights - **Business Progress**: It is expected that in Q1/Q2 of 2026, there will be sample submissions and technical exchanges with North American manufacturers, with bidding and supply expected to materialize in Q3 of 2026 [2] - **Key Timelines**: The bidding process is set to finalize in Q3 of 2026, with medium-low voltage equipment requiring a lead time of three months [2] - **Domestic New Projects**: Most new projects led by Alibaba are adopting HVDC, with Tencent's penetration rate at 40-50% and ByteDance starting at over 30% in Q1 of 2026 [2] - **North American HVDC Penetration**: The penetration rate for HVDC in North America is currently low, but high voltage is rapidly penetrating the market, with an expected increase from 16% in 2026 to over 30% in 2027 [2]