AI Chip Cooling War: Why AlN Substrates Matter

As GPU power consumption breaks the kilowatt barrier, chip heat dissipation has become the core bottleneck restricting AI computing power. Ceramic substrates, with their outstanding heat dissipation performance, stable dielectric properties, and high reliability, perfectly align with AI's core demands for thermal management, high-frequency high-speed operation, and stability.

Take AlN ceramic substrates as an example. Their thermal conductivity can reach 170-230 W/(m·K), 6-10 times that of alumina substrates. With a thermal expansion coefficient of approximately 4-5 ppm/℃, AlN matches silicon chips closely, effectively preventing solder joint failures caused by excessive temperature differences. In applications such as LED heat dissipation AlN substrates, chip junction temperatures can be controlled within reasonable ranges, significantly improving heat dissipation efficiency.

Without high-performance ceramic substrates, AI chips running at full speed are essentially "running a fever."

Market Explosion: How Big Is the Opportunity?

According to Global Info Research, global ceramic substrate revenue reached approximately USD 1.617 billion in 2024 and is projected to climb to USD 4.144 billion by 2031, representing a CAGR of 14.6%.

Market Research Future estimates the ceramic substrate market at USD 12.79 billion in 2024, with growth from USD 14.51 billion in 2025 to USD 51.21 billion by 2035, averaging 13.44% annual growth.

AlN and silicon nitride substrates are growing significantly faster than traditional alumina products, primarily because alumina ceramics increasingly fail to meet the thermal management requirements of power modules in high-power packaging applications.

Industry Chain Key: Powder Determines Substrate Performance

The performance ceiling of ceramic substrates largely depends on upstream powder materials. Currently, high-end AlN powder preparation technology is basically monopolized by Japan, the United States, and Germany, accounting for the majority of global market share.

China started AlN powder preparation relatively late, but has made significant progress in recent years. Xiamen Juci Technology Co., Ltd. is a representative enterprise.

Founded in 2016 in Xiamen based on the research achievements of Professor Qin Mingli's team at the University of Science and Technology Beijing, Juci focuses on the R&D, production, and sales of high-grade AlN powder and ceramic products. The company's main products include four categories: high-purity fine AlN powder, AlN granulation powder, AlN filler powder, and AlN ceramic products.

In 2023, Juci was selected as a "National Specialized and Innovative Little Giant Enterprise," with AlN production reaching 400 tons. In 2024, the company's AlN powder capacity reached 600 tons, ranking among the world's leading players in terms of capacity and sales scale. The company adopts the precursor carbothermal reduction nitridation method, and its product quality has been widely recognized by domestic and international customers.

In September 2024, Juci signed an agreement with the Hohhot Economic and Technological Development Zone to invest RMB 800 million in building an Inner Mongolia production base for high-purity nitride electronic ceramic materials. Upon full operation, the project will produce 5,000 tons of high-purity nitride electronic ceramic materials annually. As the project gradually progresses, the company's annual capacity will increase substantially, with the potential to rank among the global leaders in this niche segment. The project leverages local advantages in land and electricity costs, further enhancing the company's core competitiveness.

Notably, Juci holds a leading position in injection-molded complex precision AlN ceramic products, capable of producing precision ceramic components for high-end applications such as IGBT packaging, power modules, and LED heat dissipation AlN substrates.

Juci Product Matrix and Core Advantages

With thermal conductivity reaching 170-230 W/(m·K)—far exceeding alumina substrates (15-30 W/(m·K))—AlN ceramic substrates are the ideal choice for high-power device packaging. Juci's product line covers key segments of the AlN industry chain:

Powder Products: Including high purity AlN powder, low oxygen content AlN powder, and semiconductor grade AlN powder, meeting diverse application requirements. High purity AlN powder price is competitive, providing downstream customers with cost-effective domestic alternatives.

Ceramic Products: Complex precision AlN ceramic components widely used in power module packaging, LED heat dissipation AlN substrates, and AlN ceramic substrate sintering applications.

AlN Thermal Materials: As the core raw material for AlN thermal materials, Juci's AlN powder has broad application prospects in thermal interface materials (TIM) such as thermal greases, thermal gels, and thermal pads.

The Future Is Here: Domestic Substitution at the Right Time

With the accelerated penetration of third-generation semiconductors—silicon carbide and gallium nitride—and the explosive demand for AI computing power, ceramic substrates are facing a historic opportunity.

Domestic enterprises have achieved the transition from "following" to "running alongside" in the AlN powder field. The rise of companies like Juci is breaking the monopoly of international giants on high-end powder materials, providing stable and reliable domestic raw material supply for downstream AlN ceramic substrate manufacturers. As the Inner Mongolia 5,000-ton capacity project gradually advances, Juci Technology's leading position in the global AlN materials field will be further consolidated.

From "flour" to "bread," the domestic ceramic substrate industry chain is accelerating its closed loop. Whoever masters the core preparation technology of high thermal conductivity AlN powder at the material end will gain the upper hand in the heat dissipation competition of the AI computing era.

Xiamen Juci specializes in the R&D, production, and sales of AlN powder and AlN ceramic structural components, possessing mature production technologies and a comprehensive service system with reliable quality and stable supply. For those in need of AlN powder and related products, please feel free to contact us at any time, and we will provide you with professional solutions.

Contact: Jenny Qin / 진현혜

Xiamen Juci Technology Co., Ltd.

Phone: +86 151-5177-8700

Email: qinxianhui@chinajuci.com

Website: www.jucialnglobal.com