Minsheng Securities: Innovative applications help the resurgence of the electronic new materials industry

AIGC promotes industrial transformation, and innovative applications help the resurgence of the electronic new materials industry. The industrialization of AIGC continues to advance, with increased demand for computing power stimulating the iteration of laser modules at higher speeds, upgrading from air cooling to liquid cooling for high-density servers and increased GPU power consumption driving heat dissipation demand. Upstream materials in the related industry chain such as gallium arsenide, indium phosphide, lithium niobate for photonic chip substrates, photonic chip bases, and liquid-cooled boards are deeply benefiting from the continuous expansion of AIGC industrial applications. Currently, the electronics industry is showing a significant resurgence trend, and AIGC's addition of innovative applications is expected to accelerate the industry's recovery process. Upstream raw materials in the electronics industry are expected to benefit from the resurgence of the industry cycle.