Core Viewpoint - Microsoft is developing a new "microfluidics" technology for cooling, which could disrupt existing cooling solutions in the AI server market and impact Taiwanese cooling manufacturers like Huan Hsin, Chi Mei, and Shuang Hong [1][2][3] Group 1: Technology Development - The microfluidics technology involves cooling liquid flowing through microchannels etched on chips, providing superior heat dissipation compared to traditional methods [1][3] - This technology allows for effective cooling even at high temperatures, potentially reaching up to 70 degrees Celsius [3] - Microsoft aims to leverage this technology to stack and develop more powerful chips without increasing the number of chips needed, enabling overclocking during peak usage [3] Group 2: Market Impact - The announcement has led to significant stock declines for Taiwanese cooling companies, with Huan Hsin dropping 4.46%, Chi Mei falling below 1,000 TWD, and Shuang Hong decreasing to 879 TWD [2] - The cooling technology landscape is evolving, with NVIDIA's AI platforms consuming over 2,000W, prompting a series of cooling innovations, but Microsoft's approach may disrupt this trend [2]

Core Viewpoint - The explosive growth in AI computing power demand is driving the advancement of liquid cooling technology towards higher-end solutions [1] Group 1: Microfluidic Cooling Technology - Microsoft has developed microfluidic cooling technology that delivers cooling liquid directly to the chip's interior through tiny channels, significantly improving cooling efficiency [3] - The cooling efficiency of this technology is three times higher than existing cooling plates, reducing the maximum temperature rise of chips by 65%, which supports denser data center deployments and extends hardware lifespan [3] - AI plays a crucial role in this technology, as Microsoft collaborated with Swiss startup Corintis to design biomimetic structures for precise cooling liquid coverage and to identify thermal signals for adaptive cooling [3][4] Group 2: Technical Challenges and Future Prospects - The design of internal channels in chips poses technical challenges, requiring a balance between sufficient depth to prevent blockage and avoiding excessive etching that could cause breakage [4] - Microsoft has iterated on this technology over a year, and it may enable new chip architectures, such as 3D chips, which generate significant heat [4] - Future research will focus on integrating microfluidic cooling technology into Microsoft's chip products, with advantages in cost and reliability [4] Group 3: Competitive Landscape and Market Implications - Other tech giants, such as NVIDIA, are also pushing for advancements in liquid cooling technologies, with NVIDIA requesting suppliers to develop new micro-channel liquid cooling plate technology [4] - The traditional cold plate liquid cooling method remains prevalent, characterized by high maturity and widespread application, which may dominate the market in the short term due to its operational simplicity and total cost of ownership advantages [5] - The transition to new liquid cooling solutions may alter the supply chain landscape, presenting opportunities for domestic liquid cooling supply chain companies, including traditional VC firms, liquid cooling module manufacturers, heat sink manufacturers, and 3D printing firms [5]