Summary of AIDC and Power Equipment Q3 Conference Call Industry Overview - The Solid State Transformer (SST) is viewed as the ultimate solution for power supply, with a clear technological path transitioning from low voltage to medium and high voltage AC/DC conversion nodes. The Chinese supply chain has advantages in the medium voltage DC sector and is expected to enter the North American market, with companies like Jinpan and Sungrow actively promoting related projects. Mature products are anticipated by 2027-2028 [1][2][6]. Key Points and Arguments - **Market Growth**: The AIDC and power equipment sectors performed well in Q3 2025, particularly due to sustained overseas demand. The capital expenditure of the four major North American tech companies increased by 73% year-on-year in Q3, with an overall expected growth of 63% for the year and 66% for 2024, indicating a high level of market vitality [2][12]. - **SST Technology**: SST is recognized as the future of power supply solutions, with a clear technological path. Key components include ACDC conversion, isolation transformation, and DCDC conversion. ACDC technology is mature, while DCDC is expected to accelerate due to data center testing [4][5][11]. - **Chinese Supply Chain Advantages**: Chinese companies have strong capabilities in medium voltage DC and are well-positioned to enter the North American market due to their manufacturing capabilities and local market adaptation. Companies like Jinpan and Sungrow are expected to conduct grid connection tests in 2026 and achieve small batch orders by 2027 [6][7][8]. - **High Voltage Projects**: The ultra-high voltage projects are driven by policy, with a significant increase in approvals expected in 2025. Major projects in Zhejiang and Datarat are anticipated to have over 80 approvals, indicating strong government support [2][17][20]. Other Important Insights - **Electricity Supply Challenges**: The U.S. has seen rapid growth in new installations, with growth rates exceeding 2% in 2023 and 2024, and expected to surpass 3% in 2025. This presents challenges for the power equipment supply chain, as the production cycle for transformers and other equipment is long, leading to ongoing electricity shortages and rising electricity prices [12][18]. - **Company-Specific Developments**: - **Maimi Company**: Currently in a rapid expansion phase, with employee numbers expected to rise from over 7,000 to between 9,000 and 10,000 by year-end, indicating significant investment in the power sector [9]. - **Oulutong Company**: The overseas market outlook is promising, with potential milestone events expected by year-end or early next year. Despite weaker performance in Q3, projects with clients like Google are anticipated to yield small batch supplies soon [10]. - **Future Trends**: The AIDC sector, particularly SST and PSU, is expected to perform well in Q4 and beyond. The distribution segment is also showing good order fulfillment and low valuations, making it a focus area for investment [11][12]. This summary encapsulates the key insights from the conference call, highlighting the growth potential and challenges within the AIDC and power equipment sectors, as well as specific company developments and market trends.