Summary of Key Points from Conference Call Records Industry Overview - The conference call discusses the Artificial Intelligence Data Center (AIDC) industry in China, focusing on the shift from CPU to GPU dominance in data centers, driven by government policies and market demand for efficient computing [1][5][24]. Core Insights and Arguments - **Government Support**: Multiple local governments have introduced computing power subsidy policies, and the national government has implemented measures to support green energy and carbon neutrality, such as monitoring energy consumption in data centers [1][2][3]. - **Shift in Technology**: Data centers are transitioning from CPU-centric architectures to GPU-centric models, with various chip architectures coexisting. The rise of domestic computing power is notable, especially after restrictions on NVIDIA products [1][5][7]. - **Liquid Cooling Technology**: Liquid cooling has become the mainstream cooling method for high-performance data centers, particularly suitable for high-power GPUs and domestic chips. For instance, Tencent's data center project in Southwest China employs liquid cooling solutions [1][6]. - **Impact of Large Model Technology**: The proliferation of large model technology is pushing GPU revenues to approach or even exceed CPU revenues, reshaping cloud computing business models and promoting the use of new chip types like TPUs [1][8]. - **Future Demand for Inference Cards**: It is anticipated that by 2028-2030, the demand for inference cards will surpass that for training cards due to the integration of large model capabilities into cloud computing products [1][10]. - **Diverse Resource Allocation**: Different internet companies have varying configurations of computing resources based on their customer profiles. For example, ByteDance focuses on inference resources, while Tencent has a significant reserve of H20 models [1][13]. Additional Important Insights - **Regional Development**: Regions like Northwest China are becoming key sites for large cooling centers due to favorable climate and lower electricity costs. Major cities in the Yangtze River Delta and Pearl River Delta are also emerging as competitive markets for cloud vendors [2][3]. - **Green Energy Standards**: Increasingly stringent green energy requirements are influencing the selection of data center locations, with projects needing to meet high renewable energy ratios to gain approval [4]. - **Investment Returns in Computing Power Leasing**: The investment return on computing power leasing varies by card type, with H800 systems generating significant revenue potential despite longer payback periods for domestic cards [14][15]. - **Competition in the Chip Market**: The domestic chip market is becoming increasingly competitive, with major players like Huawei and Haiguang holding significant market shares. Independent chip manufacturers face challenges but can thrive through strategic partnerships and innovation [17][31]. - **Importance of Cloud Computing**: Cloud computing serves as a critical benchmark for evaluating chip performance, with successful cloud applications indicating reliability and high performance [30]. Conclusion The AIDC industry in China is undergoing significant transformation driven by government policies, technological advancements, and market demands. The shift towards GPU-centric architectures, the rise of liquid cooling technologies, and the impact of large model technologies are reshaping the landscape, presenting both opportunities and challenges for various stakeholders in the industry.

Group 1 - The semiconductor materials and equipment theme index on the STAR Market has seen a slight decline of 0.23% as of July 21, 2025, with mixed performance among constituent stocks [1] - The STAR semiconductor ETF (588170) has experienced a recent inflow of funds, accumulating a total of 32.47 million yuan over the past six days, with a peak single-day net inflow of 16.21 million yuan [1] - The ETF's latest scale reached 261 million yuan, marking a one-month high [1] Group 2 - OpenAI's CEO stated that the number of GPUs in use will exceed 1 million by the end of the year, indicating strong demand for AI-related hardware [2] - Hon Hai (Foxconn) has begun mass production of NVIDIA's GB200 AI servers and is set to introduce the next-generation GB300 servers, with expectations for the Vera Rubin platform to become a key product by late 2026 to 2027 [2] - Domestic IC design companies are working on adapting inference cards to local supply chains, which could benefit from the growing demand for AI and advanced packaging technologies [2][3] Group 3 - The STAR semiconductor ETF (588170) tracks the semiconductor materials and equipment theme index, focusing on companies in semiconductor equipment (59%) and materials (25%) sectors [3] - The semiconductor equipment and materials industry is crucial for domestic substitution, characterized by low domestic production rates and high potential for domestic replacement [3]

Group 1 - The report from Dongwu Securities indicates that AI demand is driving the equipment supply chain, with advanced processes continuing to expand production [1] - Historically, training cards were primarily supplied by Nvidia, with the necessary advanced processes like 3D stacking being outsourced to TSMC; however, inference cards do not necessarily require 3-5nm advanced processes and can be effectively produced on domestic 12nm platforms [1] - Domestic IC design companies such as TianShu ZhiXin, MuXi, SuiYuan, and DengLin are beginning to migrate inference cards to the domestic supply chain, with companies like ShengHe JingWei and SMIC expected to benefit from this shift [1] Group 2 - From an advanced logic perspective, domestic advanced logic production is expected to exceed expectations by 2025 [1] - In terms of memory, a new iteration cycle is anticipated next year, which is expected to lead to more projects being launched [1]

Investment Rating - The report maintains an "Overweight" rating for the semiconductor industry, indicating a positive outlook for the sector in the next 6 months [1][7]. Core Insights - The rapid development of AI computing demand is a key driver for the semiconductor industry, with domestic equipment manufacturers expected to benefit significantly [1][4]. - The high-end SoC testing machine market presents substantial opportunities, necessitating breakthroughs from domestic manufacturers due to the complexity of testing [4]. - The demand for AI is driving the equipment supply chain, with advanced processes continuing to expand, particularly in domestic IC design companies [4]. - Silicon photonics equipment leaders are seeing a surge in orders, benefiting from the industrialization of silicon photonics driven by AI [4]. - Investment recommendations include focusing on advanced packaging, backend testing, front-end processes, and silicon photonics equipment [4]. Industry Trends - The semiconductor industry is projected to outperform the CSI 300 index, with a forecasted growth trajectory that shows a significant increase in demand for AI-related technologies [3][4]. - The report highlights the importance of domestic supply chains in the production of inference chips, which are becoming increasingly competitive on cost [4]. - The anticipated expansion in advanced logic and memory sectors is expected to lead to new project launches in the coming year [4].