Northeast: Diamond is an excellent heat dissipation material, and industrialization is accelerating.

Northeast releases research report, stating that diamond is an excellent material for semiconductor cooling, with low density, thermal expansion coefficient similar to silicon, superior to copper and aluminum, and also has electrical insulation properties, making it an excellent material for electronic packaging. China's artificial diamond production accounts for 95% of the global total production, with industrial-grade diamond production and sales accounting for over 90% globally. Currently in the early stage of development, main applications include CVD diamond heat sinks, diamond/metal composite materials, CVD diamond coatings, diamond materials integrated with microchannel liquid cooling for heat dissipation, with faster commercialization progress seen in diamond-copper composites. The industry still faces difficulties in industrialization, with high costs and complex processing. Northeast's main points are as follows: Diamond is an excellent material for semiconductor cooling With the continuous development of AI chips, their power consumption has significantly increased, leading to a greater demand for heat dissipation. Among commonly used electronic packaging materials, diamond has significantly better cooling capacity compared to other materials. Diamond's thermal conductivity ranges from 800 to 2200W/mk, diamond-copper from 450 to 600W/mk, diamond-aluminum from 440 to 530W/mk, while graphene from, and Si's thermal conductivity is 150W/mk, with aluminum and copper at 238W/mk and 400W/mk, respectively. Diamond's thermal conductivity is influenced by its processing, but overall it is much higher than traditional aluminum and copper. Additionally, diamond has low density, thermal expansion coefficient similar to silicon, superior to copper and aluminum, and also has electrical insulation properties, making it an excellent material for electronic packaging. China holds dominance in the diamond industry, with industry scale expected to grow rapidly According to third-party data, China's artificial diamond production accounts for 95% of the global total production, with industrial-grade diamond production and sales accounting for over 90% globally. The global industry scale is expected to increase from $3.5 billion in 2025 to $6.91 billion in 2031. According to TrendvaultResearch data, the global diamond functional materials market is expected to reach $5.9 billion in 2033. Commercial progress is accelerating, with the industry potentially entering a point of explosion Diamond cooling is still in the early stage of development, with main applications including CVD diamond heat sinks, diamond/metal composite materials, CVD diamond coatings, diamond materials integrated with microchannel liquid cooling for heat dissipation, with faster commercialization progress seen in diamond-copper composites. In February 2026, U.S.-based Akash Systems delivered the world's first batch of NVIDIA H200 servers with diamond cooling solutions to Indian company NxtGenAI, achieving a 15% increase in GPU unit energy efficiency (FLOPS/W). In April 2026, the diamond-copper composite material developed by the Institute of Materials Technology and Engineering of the Chinese Academy of Sciences in Ningbo was deployed at the core nodes of the Zhengzhou National Supercomputing Internet, achieving the first large-scale commercial use in China. The industry is actively promoting the adoption of diamond cooling, with a potential point of industry explosion approaching. Several challenges remain in industrialization, with domestic enterprises actively seeking breakthroughs Diamond has excellent performance, but there are still challenges in industrialization, including high costs and complex processing. In addition, diamond has higher thermal resistance compared to metal, making bonding with chip surfaces difficult. Domestic companies such as Huawei, Sinomach Precision Industry Group, Beijing Worldia Diamond Tools, Henan Huanghe Whirlwind, Henan Liliang Diamond, Central South University, Yan Shan University, and Jilin University are actively breaking through these challenges. Huawei and Harbin Institute of Technology jointly applied for and published a patent for a "mixed bonding method for a three-dimensional integrated chip based on silicon and diamond." Sinomach Precision Industry Group's CVD diamond products (including single crystal and polycrystalline) have entered the verification stage with industry-leading customers, samples of diamond-copper composite materials have been sent to key customers for verification, and high-quality CVD diamond heat sinks from Beijing Worldia Diamond Tools have been certified by some customers. Related companies: Sinomach Precision Industry Group, Beijing Worldia Diamond Tools, Sf Diamond Co., Ltd., Henan Liliang Diamond, North Industries Group Red Arrow, HFZS, etc. Risk warning: Data center demand growth lower than expected; diamond cooling industrialization progress lower than expected; macroeconomic development lower than expected.