PCB and Liquid Cooling: The Dual Engines of ‘Hard Technology’ in the Computing Power Revolution

1. Global Computing Power Competition: The New Infrastructure Wave of the Digital Economy

Driven by technologies such as AI, 5G, and the Metaverse, global demand for computing power is growing at an annual rate of 30%. According to IDC, the global computing power scale is expected to reach 3300 EFlops by 2025, a tenfold increase from 2020. This trend has directly led to three major industrial transformations:

1. Data Center ConstructionThe number of global super-large data centers has surpassed 1000, and China’s “East Data West Computing” project plans eight major computing power hubs, expected to drive investments in the hundreds of billions;
2. Explosion of AI ServersNVIDIA’s GB200 server has a single cabinet power density of 750 kW, which is 15 times that of traditional servers;
3. Automotive ElectrificationThe PCB value of L4 autonomous driving domain controllers exceeds $200, which is 50 times that of traditional fuel vehicles.

In this context, PCB (Printed Circuit Board) and liquid cooling technology, as the “skeleton” and “cooling system” of computing power infrastructure, have become the focus of investment.

2. PCB: The ‘Neural Network’ of Computing Hardware

PCB serves as the “neural network” connecting chips and components in electronic devices, and its technological upgrades directly determine the performance boundaries of computing power:

1. Surge in Demand for High-Frequency and High-Speed MaterialsAI servers require the use of Low DK (dielectric constant) copper-clad laminates and ultra-low profile copper foil (HVLP) to reduce signal transmission losses. Companies like Shengyi Technology and Taigang Electronics have achieved breakthroughs in high-frequency and high-speed PCB domestication using materials such as PPO resin and hydrocarbon resin;
2. Breakthroughs in HDI and Packaging Substrate TechnologyHDI (High-Density Interconnect) technology compresses line width and spacing from 50μm to 20μm, meeting the high-density wiring needs of GPU/ASIC chips. Companies like Shenzhen Circuit and Unimicron have achieved mass production of HDI boards through laser drilling and plating technologies;
3. Automotive Electrification Driving DemandL4 autonomous driving domain controllers require 8-10 layer HDI boards, with a single vehicle’s PCB value exceeding $200. Companies like Huada Technology and Jinko Electronics have entered the supply chains of Tesla and NIO through automotive-grade certification.

The global PCB market is expected to reach $83 billion by 2025, with high-end PCBs (HDI/packaging substrates) accounting for 35%, becoming the core track pursued by investors.

3. Liquid Cooling Technology: The ‘Ultimate Solution’ for Computing Power Cooling

Traditional air cooling technology can no longer meet the cooling demands of AI servers at 750 kW per cabinet, and liquid cooling technology has become the inevitable choice due to three major advantages:

1. Efficiency RevolutionLiquid cooling efficiency is 3000 times that of air cooling, which can reduce the PUE (Power Usage Effectiveness) of data centers from 1.8 to below 1.05, saving 40% on electricity costs;
2. Technological IterationCold plate liquid cooling indirectly dissipates heat through metal cold plates and has achieved large-scale application; immersion liquid cooling completely immerses servers in cooling liquid, supporting cabinet densities of 100 kW+, with Microsoft Azure data centers projected to save over ten million dollars in electricity costs after implementation;
3. Domestic BreakthroughsCompanies like Juhua Co. and New Chemical Materials have made breakthroughs in fluorinated liquid technology, achieving domestication of cooling liquids; companies like Invec and Shenling Environment have launched “wind-liquid co-source” solutions, compressing delivery cycles from three months to three weeks.

The global liquid cooling market is expected to exceed 120 billion yuan by 2025, with China’s liquid cooling data center penetration rate increasing from 5% in 2020 to 40% in 2025, becoming a “golden track” for investment.

4. The Deep Logic Behind Investment: Technological Barriers and Industrial Dividends

The investment frenzy in the PCB and liquid cooling industries is essentially a resonance of technological barriers and industrial dividends:

1. Technological BarriersHigh-end PCBs require mastery of core technologies such as high-frequency and high-speed materials and laser drilling; liquid cooling must overcome challenges in cooling liquid formulations and fluid dynamics, with leading companies building moats through technological accumulation;
2. Policy DividendsChina’s “East Data West Computing” enforces PUE standards, and the U.S. CHIPS Act subsidizes the domestic semiconductor industry, accelerating industry outbreaks through global policy shifts;
3. Demand CertaintyDemand for AI computing power, automotive electronics, and 5G communication is rigid, and PCB and liquid cooling, as “water sellers”, will benefit long-term from the digital economy wave.

Conclusion: The investment in PCB and liquid cooling technology is an inevitable product of the global computing power competition. The former serves as the “neural network” of computing hardware, while the latter is the “ultimate solution” for cooling systems, together constructing the underlying infrastructure of the digital economy. With the deepening application of technologies such as AI, 5G, and autonomous driving, these two industries will continue to release technological dividends, becoming benchmarks for “hard technology” investment in the capital market.