Layer 5 — Liquid cooling (IT-side: chip to CDU)

Position in the die→grid hierarchy: the rack.

Liquid cooling on the IT side, from the chip to the coolant distribution unit: cold plates, manifolds, quick disconnects, hoses, CDUs, the pumps and plate heat exchangers inside them, the fluids in the loop, and the sensors watching for leaks.

Layer 5 covers everything that moves heat off an AI accelerator and out to the coolant distribution unit (CDU) — the IT-side half of a liquid-cooling loop, before the heat is handed to the facility water loop in Layer 6. The chain runs from cold plates bonded to the GPU, CPU, and switch packages, through rack manifolds and quick disconnects, hoses and fittings, up to the CDU itself and the plate heat exchangers, pumps, and filters inside it. Rear-door heat exchangers and immersion systems are alternate architectures that skip or reshape parts of that chain. Fluids and coolant treatment, leak detection and sensing, and rack/row controls run alongside the physical loop and keep it safe and tuned. Air cooling could not keep pace with GPU power density, so this layer went from a niche add-on to a default rack component in a few product cycles. The investable choke points sit at the connection points rather than the pipe itself: quick disconnects and cold plates require tight tolerances and qualification against a specific chip package, so switching suppliers mid-program is costly; CDUs bundle mechanical, thermal, and controls engineering that not every player can scale to facility-class units; and the reference-design ODMs (Foxconn, Wiwynn) building cold plates in-house for their own racks compete directly with the component vendors this layer otherwise depends on. Fluids sit downstream of a real supply shift, with a large single-phase and two-phase producer exiting part of the category.

Parts in this layer

Public plays in this layer

Listed companies with the most part placements in layer 5. Placement count is breadth, not revenue exposure.

CompanyTickerParts herePriceMkt cap
VertivVRT6194 USD74.8B
nVentNVT5125 USD20.3B
Parker HannifinPH4881 USD111.1B
Kaori8996.TW41560 TWD145.1B
Foxconn (Hon Hai)2317.TW3245 TWD3.45T
EatonETN3366 USD142.2B
Delta Electronics2308.TW31560 TWD4.05T
Auras3324.TWO31360 TWD126.6B
ShellSHEL2108 USD307.4B
Schneider ElectricSU.PA2231 EUR136.1B
Nidec6594.T21705 JPY1.96T
Fositek6805.TW22335 TWD160.1B
EmersonEMR2162 USD90.1B
AVC3017.TW23145 TWD1.23T
XylemXYL1109 USD25.4B
Wiwynn6669.TW11840 TWD1.02T
TraneTT1445 USD97.9B
SupermicroSMCI132.94 USD21.3B
SensirionSENS.SW181.50 CHF1.3B
MuntersMTRS.ST1131 SEK24.0B
Mitsubishi Electric6503.T14770 JPY9.76T
LyondellBasellLYB166.45 USD21.5B
Lotes3533.TW11795 TWD204.2B
LegrandLR.PA1124 EUR32.5B
Kurita6370.T16889 JPY726.2B