Summary of Conference Call Records Company and Industry Overview - The conference call focuses on Google and the AI infrastructure industry, particularly in relation to the demand for servers, switches, and high-layer PCBs [1][2][3]. Key Points and Arguments Google’s AI Strategy - Google has a comprehensive layout in the AI sector, possessing the largest global data ecosystem, which includes TPU chips, the Gemini AI model, and various application scenarios [2][4]. - The Gemini 3 model and its application, Nano Banana, have shown exceptional performance, leading to a surge in user numbers from 450 million to 650 million, significantly increasing the demand for computational power [4]. Capital Expenditure and Demand - Capital expenditure (Capex) is expected to continue rising, closely linked to the construction of computational infrastructure, alleviating concerns over demand for servers and switches [2][3]. - The PCB segment is anticipated to see increased demand due to the replacement of copper cables and chip upgrades, with significant growth expected in the coming years [2][3]. TPU Chip Developments - Google has launched the V7 TPU chip, expected to enter mass production by mid-2026, with projected shipments reaching 4 million units [1][5]. - The V7 TPU cabinet design will increase from 20 layers to 34-36 layers, with material upgrades leading to a price increase of two to three times [5]. Switch and Module Upgrades - The industry will primarily focus on 800G switches in 2025, transitioning to 1.6T switches in 2026, with PCB specifications nearly doubling in price [3][6]. - The 1.6T optical module will utilize finer line widths, significantly increasing its value compared to the 800G module [6][7]. Supply and Demand Forecast - The computational PCB segment is expected to remain in a tight supply-demand situation until the end of 2025, with Google's procurement expected to triple from approximately 5 billion RMB to over 15 billion RMB [8]. - The ASIC sector is projected to grow from under 10 billion RMB in 2024 to nearly 80 billion RMB by 2027, indicating an eightfold increase [8]. - Due to the capital-intensive nature of the PCB industry, new capacity expansion will take time, suggesting a continued tight supply in the next 1-2 years, presenting investment opportunities [8]. Additional Important Insights - Key players in the industry, such as Huadian Technology, Pengding Holdings, and Shenghong Technology, along with upstream material suppliers, are recommended for investment consideration due to the high demand for multi-layer PCBs [8]. - The transition from lower-grade to higher-grade materials, such as from Ma Seven to Ma Nine copper-clad resin, is crucial for meeting the increasing demand for high-layer PCBs [8].