Summary of Liquid Cooling Materials Conference Call Industry Overview - The conference focuses on the liquid cooling materials industry, particularly in the context of AI chip cooling and data centers [1][2][4]. Key Points and Arguments Types of Liquid Cooling Media - Liquid cooling media are categorized into three types: water-based, oil-based, and fluorinated liquids, each with distinct advantages and disadvantages [1][3][5]. - **Water-based Media**: High thermal efficiency, low cost (around tens of yuan per kilogram), but prone to leakage and microbial growth [5]. - **Oil-based Media**: Cheapest option (around 10 yuan per kilogram), but poor fluidity and potential fire hazards [5]. - **Fluorinated Liquids**: High performance but expensive (high-end options like 3M perfluoropolyether cost 400-500 yuan per kilogram) and face regulatory risks regarding PFAS [1][6]. Trends in AI Chip Cooling - The trend in AI chip cooling is shifting from traditional air cooling to liquid cooling solutions due to high power density requirements [2][4]. - Single-phase cooling plates are being replaced by dual-phase cooling plates, which are expected to be widely adopted by 2024 [2]. Cost Considerations - The cost of cooling media is significant in system design. For example, a single cabinet requiring 120-150 kW can cost up to 1 million yuan when using high-end fluorinated liquids [1][10]. - Using alternative media like triol or silicone oil can significantly reduce costs [10][11]. Future Trends - The combination of full immersion cooling and dual-phase cooling plates is seen as a future trend to reduce costs and address high heat flux density issues [1][13]. - The industry is moving towards designs that minimize liquid usage and optimize heat dissipation through techniques like zoning and partitioning [1][13]. Market Dynamics - Major data centers in China, such as Alibaba and ByteDance, are currently using single-phase silent liquid cooling systems, indicating a trend towards advanced cooling technologies despite high costs [18]. - Alibaba is also exploring cooling plate technology to find more economical solutions [19]. Challenges and Innovations - Dual-phase cooling technology is gaining traction, especially with NVIDIA's upcoming Ruby architecture, but faces challenges such as medium boiling point limits and pressure handling [7][24]. - The use of refrigerants in dual-phase systems is expected to grow, with potential for mainstream adoption by mid-2026 [24]. Additional Important Content - The volatility and maintenance requirements of different cooling media vary, with silicone oil and fluorinated liquids requiring less frequent additions compared to triol [14][16]. - The efficiency of cooling media is measured by specific heat capacity, with water being the most efficient but limited in application due to its non-insulating properties [22]. - The domestic market for fluorinated liquids includes major manufacturers like Juhua, New Zhiyuan, and Tianjin Changlu, indicating a competitive landscape [21]. This summary encapsulates the critical insights from the conference call, highlighting the evolving landscape of liquid cooling technologies and their implications for the AI and data center industries.

Summary of Conference Call on Liquid Cooling Technology Industry Overview - The conference call focused on the liquid cooling technology industry, particularly the development and market dynamics of single-direction and dual-direction cooling systems, as well as the materials and components involved in these systems [1][2][11]. Key Points and Arguments 1. **Cost Structure of Cooling Plates**: - Single-direction cooling plates have a cost structure where the cooling plate itself accounts for approximately 35% (full copper solution), followed by fins at about 21%, and coolant at around 10%. A copper-aluminum mixed solution can significantly reduce costs by about 30% [1][2]. 2. **Dual-Direction Cooling Plates**: - Dual-direction cooling plates require phase change and are more likely to use aluminum structures to reduce costs and weight. They utilize traditional refrigerants or fluorinated liquids instead of water-based solutions, leading to higher costs compared to single-direction systems [1][4]. 3. **Market Demand for Materials**: - The development of liquid cooling technology significantly increases the demand for aluminum and copper, especially in large-scale applications (e.g., NVL144, 288, 576), where usage can grow from hundreds of kilograms to several tons [1][15]. 4. **Investment Potential in Coolants**: - The coolant segment is identified as having the highest investment potential in the liquid cooling market, with new efficient media like fluorinated liquids and refrigerants gaining attention due to increased demand driven by AI iterations [1][17]. 5. **Supply Chain Dynamics**: - Huawei exhibits strong control over its supply chain, preferring domestic suppliers that can provide high-quality and innovative products, thus promoting domestic substitution [1][33]. 6. **Value Distribution in Liquid Cooling Systems**: - In single-direction cooling systems, the main components by value are the cooling plate (42%), fins (21%), CDU (11%), quick connectors (11%), and sensors/other accessories (1%). The coolant, while important, constitutes about 10% of the total cost [2][5]. 7. **Differences in Material Usage**: - Single-direction cooling plates primarily use a copper-aluminum mix, while dual-direction plates reduce copper dependency, favoring aluminum due to its lightweight and ease of processing [4][7]. 8. **Cooling Liquid Role**: - In single-direction systems, the coolant is crucial for heat removal, while in silent systems, the demand for insulating oil is significantly higher, potentially accounting for 30%-40% of total costs [5][6]. 9. **Competition Between Cooling Technologies**: - The emergence of dual-direction cooling plates fills a market gap between single-direction silent and traditional air cooling, leading to increased competition among companies exploring various media options [11][12]. 10. **Future Trends in Cooling Technology**: - The market is expected to see a shift towards dual-direction cooling solutions, with significant changes in materials and cooling liquids anticipated by 2026 [19][35]. Additional Important Insights - **Performance Metrics**: The primary performance indicators in liquid cooling systems focus on boiling points and the thermal properties of copper and aluminum, which are critical for effective heat dissipation [31]. - **Market Dynamics**: The liquid cooling market is projected to reach a size of 700-1,000 billion RMB by 2026, excluding IT equipment costs [25][26]. - **Emerging Technologies**: Liquid metal thermal materials are being researched for their potential to enhance thermal conductivity, although they are still in the early stages of development [36]. - **Supply Chain Competitiveness**: Domestic companies are increasingly entering the supply chain, with firms like Huawei prioritizing local suppliers to enhance control and quality [32][33]. This summary encapsulates the critical aspects of the liquid cooling technology conference call, highlighting the industry's current state, future trends, and investment opportunities.

Summary of Conference Call Records Industry Overview - The conference call discusses advancements in liquid cooling technology, particularly influenced by NVIDIA's bidirectional cold plate solution, which impacts the traditional single-phase silent cooling market while maintaining existing applications [1][2]. Key Points and Arguments - **Bidirectional Cold Plate Technology**: - This technology offers better cooling capabilities than air cooling and single-phase cold plates, handling nearly 2,500 watts of power, but is still less effective than single-phase or bidirectional silent systems [1]. - The design is complex and limited in medium selection, primarily using high-cost, low-supply low-boiling-point fluorinated liquids [1][5]. - **R134a Refrigerant**: - Tianhong Technology has validated the use of R134a refrigerant in bidirectional cold plates, raising market interest in new refrigerant applications. China, as a major refrigerant producer, may see companies expand market share due to this development [1][4][7]. - The potential demand from tech giants like Google could significantly impact the global refrigerant market, with estimates of 2,000 tons needed annually if adopted [19]. - **Market Dynamics**: - Despite the emergence of bidirectional cold plates, traditional silent cooling systems remain stable in specific scenarios, with companies like Alibaba and ByteDance continuing to use established technologies [8][12]. - The industry is exploring new cooling solutions to meet increasing chip power demands, with various manufacturers actively seeking new refrigerant solutions [13]. - **Challenges in Liquid Cooling**: - The selection of liquid mediums poses significant challenges, as high-performance liquids are often expensive, while cheaper options may have critical drawbacks [17]. - The complexity of designing and deploying liquid cooling systems adds to the overall costs and challenges [17]. Additional Important Content - **Comparative Analysis of Cooling Solutions**: - Bidirectional cold plates have higher cooling capacities compared to single-phase cold plates and air cooling, but they still have limitations and may only serve as a temporary solution for high power demands [10]. - The design complexity of hybrid cooling solutions combining cold plates and silent systems is high, making implementation difficult [9]. - **Future Trends**: - The industry is expected to see a shift towards more advanced cooling technologies if existing solutions cannot meet future demands [13]. - Companies like New Oriental are pivoting towards semiconductor temperature control etching liquids to address growth bottlenecks in cleaning businesses [26]. - **Refrigerant Market Status**: - The refrigerant market is transitioning from third-generation to fourth-generation products, with third-generation products still dominating due to their maturity and high output [20]. - Major players in the refrigerant market include traditional companies like Juhua and Sanmei, which have performed well amid rising demand due to hot weather [20]. - **Liquid Mediums in Cooling Solutions**: - The first-generation liquid cooling solutions primarily used water and glycol mixtures, while newer solutions utilize various expensive liquids, including fluorinated liquids and silicone oils [11][15]. - High-end fluorinated liquids are considered the best choice for performance, but their high cost limits widespread adoption [16]. This summary encapsulates the key insights and developments discussed in the conference call, highlighting the evolving landscape of liquid cooling technologies and their implications for the industry.