Summary of Liquid Cooling Technology Conference Call Industry Overview - Liquid cooling technology has become essential for high-power equipment cooling, particularly in the server sector, where cabinets exceeding 20 kW must rely on liquid cooling to enhance data center signal transmission efficiency [1][2] - The liquid cooling market is expected to reach a trillion-level valuation in the future, driven by demand from companies like NVIDIA and major cloud service providers such as Google and Amazon [1][7] Key Points and Arguments - **Development Stages**: Liquid cooling technology has evolved from air cooling to plate-level liquid cooling and now to immersion cooling. The GV300 level plate cooling is currently a market hotspot, but its thermal management system is still in the early stages, with revenue realization expected to take time [1][5] - **Market Position**: China holds a significant advantage in the PCB sector, capturing 60% to 70% of global production capacity. However, it lacks a strong foundation in liquid thermal management systems, with Japan and Taiwan currently leading in this area [6] - **Market Potential**: The domestic liquid cooling market is valued at approximately 600 to 700 million yuan, with potential growth to 100 billion yuan when including external equipment and demand from major tech companies [7] - **Transition from PCB to Liquid Cooling**: As the PCB sector grows, liquid cooling is becoming a critical segment, particularly in the transition from chip-level to system-level cooling solutions [2] Challenges and Opportunities - The liquid cooling industry faces market divergence due to stock market adjustments, but it still holds significant long-term growth potential. The market is expected to expand rapidly, with domestic manufacturers moving from low-end components to high-end core components [8][9] - **Investment Timing**: Current market conditions present a favorable opportunity for investors, as the industry is still in its early stages, with the formation of Tier 1 and Tier 2 suppliers just beginning [18] Additional Insights - **Certification Requirements**: Liquid cooling modules must undergo NVIDIA certification for Tier 1 and Tier 2 suppliers, while some components can enter the system through indirect means, allowing for quicker market entry [10] - **Component Performance**: Cold plates are progressing rapidly in the market, while CDU and UQD components are lagging due to their complexity and the need for extensive certification [11] - **Future Trends**: The industry is moving towards improved cooling efficiency and stability, with new materials like graphene and liquid metals emerging as alternatives to traditional thermal grease [15][16] Conclusion - The liquid cooling industry is poised for significant growth, driven by increasing demand for high-performance computing and data center solutions. The transition from traditional cooling methods to liquid cooling systems is expected to accelerate, creating numerous investment opportunities in the coming years [19]