Huatai Securities: LED module power consumption increases driving liquid cooling accelerates penetration.

Huatai Securities research report states that the expansion of AI computing power is driving high demand for optical modules, with the high-speed iteration of 800G/1.6T products leading to an increase in power consumption. Liquid cooling becomes a necessary option, leading to a broad market space for liquid-cooled optical module cages. Currently, the production of global optical module cages is mainly concentrated in domestic manufacturers. With the continuous increase in demand for high-speed optical modules and the continuous growth in power consumption, the penetration of liquid cooling in optical module cages is accelerating, and liquid-cooled optical modules are expected to usher in a broad market space. The research report believes that domestic traditional cage manufacturers are actively researching and developing high-end liquid-cooled products, expanding supporting capacity, and utilizing traditional product customer resources to continuously cooperate in product testing and certification, thereby seizing industry opportunities.