Core Viewpoint - Jinfu Technology has secured an order for a custom-developed liquid cooling plate architecture, which will be used in the cooling system for NVIDIA's B200 chip, showcasing its technological advancement and market competitiveness [1] Group 1: Product Development - The custom-developed cooling architecture features a thickness of 0.08 millimeters and utilizes the latest MLCP (Microchannel Liquid Cooling Plate) technology, providing a significant first-mover advantage [1] - The cooling solution effectively addresses the TDP thermal effects of processors with power consumption ranging from 1800W to 2000W and above, ensuring stable low-temperature operation of the processor module [1] Group 2: Client Feedback and Future Plans - Feedback from the Taiwanese client indicates that the new cooling architecture has performed well, leading to the completion of multiple rounds of sample testing for the next-generation B300 chip adaptation [1] - The company is now entering the production preparation phase for the B300 chip cooling solution, indicating a positive outlook for future orders and product development [1]

Core Viewpoint - The ChiNext Index has reached a three-year high, with the ChiNext AI sector leading global performance, having increased by 174% over the past year, significantly outperforming other major AI indices in the A-share market [1][4]. Group 1: Index Performance - The ChiNext Index has risen by 97% from September 24, 2023, to September 24, 2024, leading major global indices [1][3]. - The ChiNext AI Index has shown a remarkable increase of 174% during the same period, making it the top performer among various indices [1][4]. Group 2: Industry Drivers - The AI sector is experiencing a surge in demand for computing power, with global cloud capital expenditures expected to reach a historical high of $445 billion in 2025, reflecting a 56% year-on-year growth [8]. - Major cloud service providers like Amazon, Alphabet, Meta Platforms, and Microsoft are projected to contribute significantly to this growth, with their combined capital expenditures reaching $359 billion in 2025, a 57% increase from the previous year [8]. Group 3: Key Components - The top three constituents of the ChiNext AI Index are leading optical module companies: NewEase (20.28% weight), Zhongji Xuchuang (18.79% weight), and Tianfu Communication (6.5% weight), collectively accounting for over 45% of the index [7]. - These companies are primary beneficiaries of increased capital expenditures from global cloud giants, with Zhongji Xuchuang becoming the market leader in optical modules since 2022, holding a 40%-50% share in the global high-speed optical module market [7]. Group 4: Technological Catalysts - The upcoming release of NVIDIA's new B300 chip is expected to drive demand for high-speed optical modules, leading to a significant increase in procurement across the supply chain [9]. - The evolution of large models like GPT-5 is creating unprecedented demands for computing infrastructure, necessitating substantial upgrades in data transmission rates within AI clusters and data centers [9]. Group 5: Policy and Funding Support - Recent government policies have accelerated the integration of AI across various industries, with state-owned enterprises opening numerous AI application scenarios, providing a broad market for technological implementation [10]. - Significant inflows of leveraged funds have been observed in leading optical module companies, with NewEase and Zhongji Xuchuang seeing net purchases of 13.5 billion and 10.4 billion yuan, respectively, since the beginning of the year [10].

Core Viewpoint - The ChiNext Index has reached a three-year high, with the ChiNext AI sector leading global performance, having increased by 174% over the past year, significantly outperforming other major AI indices in the A-share market [1][5]. Group 1: Index Performance - The ChiNext Index has risen by 97% from September 24, 2024, to September 24, 2025, leading major global indices [1]. - The ChiNext AI Index has shown a cumulative increase of 174% during the same period, marking it as the strongest performer among various indices [1][5]. Group 2: Key Drivers of Growth - The strong performance of the ChiNext AI sector is attributed to three main factors: embracing the AI explosion (β), focusing on computing power hardware (α), and benefiting from policy and capital-driven growth (γ) [5]. - The ChiNext AI Index has over 74% exposure to computing power infrastructure, with more than 51% in optical module CPOs, indicating a strategic focus on the core components of the AI industry [5][6]. Group 3: Major Constituents - The top three constituents of the ChiNext AI Index are optical module leaders: NewEase (20.28% weight), Zhongji Xuchuang (18.79% weight), and Tianfu Communication (6.5% weight), collectively accounting for over 45% of the index [7]. - Zhongji Xuchuang has become the global leader in the optical module market since 2022, while NewEase ranks among the top three globally, together holding approximately 40%-50% of the high-speed optical module market [7]. Group 4: Global Demand for AI Computing Power - Morgan Stanley forecasts that global cloud capital expenditures will reach a historical high, with the top 11 cloud providers expected to increase spending to $445 billion in 2025, a 56% year-on-year growth [8]. - In China, Alibaba plans to invest significantly in AI infrastructure, with a projected tenfold increase in energy consumption for its global data centers by 2032 [8]. Group 5: Technological Advancements - The upcoming release of NVIDIA's new B300 chip is expected to drive demand for high-speed optical modules, leading to a significant increase in procurement across the supply chain [9]. - The evolution of large models like GPT-5 is creating unprecedented demands for computing infrastructure, further accelerating the deployment of 800G optical modules [9]. Group 6: Policy and Capital Support - Recent policies have enhanced the development of AI across various sectors, with state-owned enterprises opening numerous AI application scenarios, providing a broad market for technology implementation [10]. - Significant capital inflows have been observed in leading optical module companies, with Zhongji Xuchuang and NewEase seeing net purchases of 135.03 billion and 104.06 billion yuan, respectively, this year [10].

Core Viewpoint - The article discusses the rapid advancements in liquid cooling technology within the semiconductor industry, highlighting the significant power consumption increases of GPUs from Nvidia and AMD, and the evolving design and cost dynamics of liquid cooling systems. Group 1: Liquid Cooling Technology Overview - Nvidia and AMD are leading the application of liquid cooling technology, with Nvidia's B200 chip consuming 1200 watts and the latest B300 chip reaching 1400 watts, while future chips like Rubin are expected to consume up to 3600 watts [2][3] - AMD's GPU power consumption has also surged, with the MI300 series at 700-750 watts, MI325 at 1000 watts, and MI355 at 1400 watts, with the MI375 series projected to reach 1600 watts [2][3] Group 2: Core Component Upgrades - The core components of liquid cooling systems, such as cold plates, quick connectors, and piping, are evolving. The GB200 platform features 45 cold plates at a cost of $600-700 each, while the GB300 has 117 cold plates with a reduced cost of $200-300 each, leading to an overall value increase from $780,000 to $900,000 [4] - The quick connector used in GB200 is the OCP standard UQD04, while GB300 has upgraded to Nvidia's NVQD03, nearly doubling the quantity and increasing the total value to about twice that of GB200 [4] Group 3: Cooling Distribution Units (CDUs) - CDUs are moving towards standardization, with types including embedded, cabinet, and distribution types. The domestic market favors high-power CDUs (1500-2000 watts), while North America and Europe prefer distribution types with capacities of 70 kW and 150 kW, priced around $30,000 to $40,000 [5] - The unique "density stacking" strategy in the domestic GPU market has led to increased demand for liquid cooling solutions, as seen with Huawei's CloudMatrix384 cabinet having a power consumption four times that of Nvidia's NVL72 cabinet [5] Group 4: Market Dynamics and Competition - Domestic data centers are expected to adopt domestic GPU cards extensively, making liquid cooling systems a standard feature. Customization of cold plates and quick connectors is particularly pronounced in the domestic market [7] - Taiwanese manufacturers hold a leading position in the liquid cooling market due to their first-mover advantage, while domestic manufacturers like Invec offer competitive pricing and customization capabilities, with costs for CDU and internal components being 20-30% lower than their Taiwanese counterparts [8] Group 5: Challenges and Future Directions - Current challenges in liquid cooling include issues with dual-sided cold plates, such as increased pressure and deformation, as well as the high cost and environmental concerns associated with immersion cooling fluids [9] - The market is shifting focus towards new mineral oils to optimize flow rates and heat dissipation capabilities, aiming to balance cost and performance [9]

Summary of Key Points from Conference Call Industry Overview - The conference call discusses the liquid cooling technology in data centers, highlighting its increasing importance due to high thermal design power (TDP) of chips like NVIDIA's B200 and B300, which reach up to 1,400 watts, making traditional air cooling insufficient [1][2][5]. Core Insights and Arguments - **Market Growth**: The liquid cooling server market in China is projected to reach approximately 20.1 billion yuan in 2024, representing a year-on-year growth of 84.4%, and is expected to grow to 30 billion yuan in 2025 [1][4]. - **Cooling Efficiency**: Liquid cooling solutions, particularly cold plate systems, dominate the market with a 65% share, while immersion cooling holds 34%, and spray cooling only 1% [1][4]. - **Power Density Increase**: The average power density of data center cabinets has rapidly increased to 20.5 kW in 2023, with expectations to exceed 50 kW by 2029, driven by advancements in GPU technology [1][8]. - **Environmental Benefits**: Liquid cooling systems have a lower Power Usage Effectiveness (PUE) rating of 1.05 to 1.15 compared to air cooling systems, which range from 1.3 to 1.5, making them more energy-efficient and environmentally friendly [2][4]. Additional Important Content - **Applications Beyond Data Centers**: Liquid cooling technology is also applicable in electric vehicle battery management, charging stations, and potentially AI PCs, addressing high power density cooling challenges in these sectors [1][6][7]. - **Component Value Breakdown**: In the V272 cabinet, the total value of liquid cooling components is approximately $84,000, with liquid cooling plates accounting for 43% and CDU products for about 35.8% [3][22]. - **Emerging Domestic Manufacturers**: Attention is drawn to domestic manufacturers in the liquid cooling sector, particularly those involved in circuit boards, quick connectors, and CDU products, especially those that have received North American client certifications [25]. Conclusion - The transition from air cooling to liquid cooling in data centers is driven by the need for higher efficiency and power density management, with significant market growth anticipated in the coming years. The technology's application across various industries further underscores its importance in addressing modern cooling challenges.