Key points of investment

The high thermal conductivity of indium sheets is superior to TIM adhesives, providing an ideal material foundation for efficient thermal management. Chip cooling requires “internal and external repair”. While reducing energy consumption, it is also necessary to ensure the stability and longevity of components. In packaging, most heat is emitted from the top of the chip to the heat sink through the package, and thermal interface materials (TIM) with high thermal conductivity can help transfer heat between the chip and the package. The heat actually has to be transferred to the radiator through multiple conduction between the silicon wafer - the internal thermal conductive material - the CPU metal cover - and the outer thermal conductive material. In large-size packaging products, indium sheets are often regarded as a replacement for TIM glue, a traditional thermal interface material due to their excellent high thermal conductivity. Their thermal conductivity is as high as 86W/m? K, much higher than the thermal conductivity of traditional TIM adhesives (the thermal conductivity of commonly used TIM adhesives is less than 10W/m? K), providing an ideal material basis for efficient thermal management. After comparative testing, the high thermal conductivity and thermal interface material design of the indium sheet enable the heat generated by the heat source to be transferred more quickly and evenly to the radiator, thereby improving the heat dissipation efficiency of the entire system. Compared with TIM glue, indium sheets have lower thermal resistance during heat transfer, so heat can flow more smoothly and reduce partial heat accumulation, thereby achieving lower junction temperature and more uniform temperature distribution. Furthermore, indium is a silver-white soft metal with strong plasticity, good ductility, and can be pressed into a sheet. If there is a certain pressure on both sides of the contact surface, the indium can be easily sandwiched in the middle, then the heat dissipation efficiency is better.

Unlike the traditional process of applying TIM glue to the chip surface and then curing the cover, the chip and cooling cover need to be gold-plated before the indium sheet is mounted, and vacuum reflow soldering is used to cure after the cover is completed, ensuring efficient heat transfer between the indium sheet, the chip, and the cooling cover.

Increased demand for AI computing power places higher demands on chip cooling, and Huatian Technology has achieved mass production of indium chip packaging technology to drive the development of the industry. With the rapid development of artificial intelligence technology, demand for computing power has shown a rapid growth trend. In this process, the complexity and frequency of floating-point computation have continued to increase, directly leading to a significant rise in the power consumption of high-performance chips. High-performance AI chips generate a large amount of heat during operation. Failure to dissipate heat in a timely and effective manner will not only affect the stable operation of the equipment, but may also shorten its service life and limit the further growth of AI computing power.

In the future, the thermal design power consumption of a single high-performance AI chip will exceed 1,000W, reaching the traditional air-cooled heat dissipation limit.

Therefore, it is essential to adopt an efficient cooling solution on the chip package side to meet increasingly urgent cooling requirements to ensure stable operation and optimized performance of the chip. In high-end processor chips, high-power LEDs, and other high-performance AI chip applications, FCBGA packaging technology is the mainstream and places extremely high demands on heat dissipation performance. Huatian Technology successfully achieved mass production of indium sheet packaging technology, further optimized heat dissipation technology, and brought significant impetus to the development of the industry. The indium sheet packaging process control project includes indicators such as indium sheet offset, indium sheet coverage, cavity, thickness after reflow, and thickness of the back of the cooling cover. In terms of quality control, Huatian Technology has reached the leading level in the industry. Through comprehensive control, Huatian Technology can meet the high standard requirements of customers and ensure that all performance parameters of the product are in an optimal state. The application of indium sheet packaging technology not only provides reliable thermal management solutions for semiconductor devices, but also satisfies the needs of different industries for high-density design and product customization due to its excellent ductility and customizability. With its in-depth research and successful application in indium sheet packaging technology, Huatian Technology has achieved remarkable results in various fields such as high-performance processor HPC, data centers, and automotive electronics.

Investment advice: In view of the accelerated penetration of AI driving the recovery of mobile phones/PCs and other application terminals, we are adjusting our original performance expectations. Operating revenue from 2024 to 2026 is expected to be adjusted from the original 130.20/153.93/16.514 billion yuan to 130.20/153.93/17.283 billion yuan, with growth rates of 15.2%/18.2%/12.3%, respectively; net profit to mother will be adjusted from 4.69/8.10/967 million yuan to 592/9.10/1,283 million yuan, with growth rates of 161.6%/53.6%/41.1%, respectively; corresponding PE is 45.9/29.9/ 21.2 times. As the development of artificial intelligence intensifies demand for computing power chips, it is expected to drive demand for advanced packaging. Considering that Huatian Technology is based on the 3D Matrix platform, it can achieve high-density, high-reliability 3D heterogeneous integration of multiple chips through integrated silicon-based fan-out packaging, bumping, TSV, C2W and W2W, etc., and the superimposed company's production capacity will continue to be released over 24 years, and its market share in the advanced packaging field is expected to continue to grow, maintaining the “building-A” rating.

Risk warning: risk of industry and market fluctuations; risk of international trade friction; risk of failure to industrialize new technologies, new processes, and products as scheduled; risk of production expansion falling short of expectations; risk of changes in supply and price of major raw materials/equipment; risk of impairment of goodwill, etc.