Summary of Key Points from Conference Call Industry Overview - The conference call discusses the liquid cooling technology industry, particularly focusing on microchannel liquid cooling solutions and their application in the AIDC hardware sector. The technology is experiencing significant growth and investment opportunities, especially in the context of domestic computing power chip manufacturers adopting liquid cooling solutions, such as Alibaba's recent ultra-node initiative [1][2]. Core Insights and Arguments - **Market Potential**: The liquid cooling market is expected to reach nearly 100 billion by 2026, driven by the increasing demand for NV and ASIC cooling solutions. The technology's evolution and price inflation will continue to expand market size [1][3]. - **Inflationary Attributes**: Liquid cooling technology is characterized by its inflationary nature, primarily driven by the increasing computing power and energy consumption of chips, necessitating advanced cooling solutions. The transition from single-phase cooling plates to microchannel designs is projected to enhance value by approximately 20% [2][5]. - **Decision Chain Changes**: The decision-making chain in the liquid cooling sector has evolved, with more participants, including server ODM manufacturers and power supply companies, entering the market. This shift presents opportunities for domestic suppliers to collaborate and produce under private labels [4][6]. - **Microchannel Technology Development**: Microchannel liquid cooling technology is rapidly advancing, with major players like NVIDIA and Microsoft pushing its adoption. The anticipated power requirements for next-generation chips, such as the Ruping Ultra, are expected to exceed 2000 watts, challenging existing cooling solutions [5][6]. Additional Important Insights - **Challenges in Microchannel Technology**: Despite its advantages, microchannel technology faces challenges such as complex manufacturing processes, high pump capacity requirements, and stringent water quality standards. These factors necessitate synchronized product iterations across the entire liquid cooling system [10][12]. - **Opportunities for Domestic Suppliers**: The transition to microchannel solutions may create new opportunities for domestic suppliers, especially if existing suppliers cannot keep pace with product iterations or quality standards. Startups with innovative technologies may also require ODM partnerships to scale production [14][15]. - **Potential Growth Areas**: Several types of companies within the domestic liquid cooling supply chain show promise for growth, including traditional cooling module manufacturers and companies specializing in chip cover plates. These firms are already integrating microchannel cooling solutions into their offerings [15][16]. - **Future Trends**: The development of microchannel liquid cooling systems is expected to enhance overall liquid cooling management logic, despite current production challenges. The anticipated increase in value and demand for advanced cooling solutions indicates a growing market for innovative technologies [17].