only CPU, just a thin layer is enough
most of the time i put a little bit on the CPU and spread it with a piece of a box (like the box of a graphics card) just spread it like butter, make sure everywhere on the CPU has a little bit.
place the heatsink on the cpu, but before you secure hem, twist it a little bit, with almost NONE downforce, to make sure you've got a good contact between thermal compound and heatsink. twist it only a few degrees!!
threat it like a lady, gentle and smooth.
secure the heatsink, and done
success!!
put a little on the CPU
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spread it
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if it's not enough to cover a thin layer on the whole CPU, put a little more
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spread it if you needed to apply a little more.
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clean the green sides of the cpu with a soft, no fluffing cloth, if you smudged on it.
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align your heatsink
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place you heatsink on the CPU
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twist the heatsink a few degrees to the left, right and back
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secure the heatsink
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visual inspection retention mechanism and CPU, to make sure no thermal grease oozed of of place
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feel careful if the heatsink is properly secured and fitted.
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done
be careful the fist times you do this and don't hurry because you probably not want to burn something, but don't be afraid it's something you learn very fast.