The Zhitong Finance App learned that Huayuan Securities released a research report saying that with regard to the upgrading of high thermal conductivity materials, the increase in demand for temperature control of optical communication, and the direction of domestic replacement of high-end ceramic substrates, it is recommended to focus on: 1) integrated targets for aluminum nitride powder and ceramic substrates; 2) DPC ceramic carrier boards, optical communication ceramic substrates and tube case manufacturers; 3) layout targets for ceramic hybrid PCB development and application expansion.
The main views of Huayuan Securities are as follows:
AI computing power and high-speed optical communication drive the upgrading of cooling requirements, and the application space for ceramic substrates continues to expand
Ceramic substrates have the advantages of high thermal conductivity, electrical insulation, high temperature resistance, and high thermal expansion coefficient matching. Applications are extending from traditional power devices to AI servers, high-speed optical modules, and CPO. Among them, aluminum nitride adapts to the precise temperature control requirements of optical devices with its excellent high thermal conductivity, and silicon nitride adapts to SiC power modules with its high mechanical strength and heat cycle resistance; as chip power consumption and package density increase, demand for high-performance ceramic materials is expected to continue to grow.
Optical module speed upgrades drive up the volume and price of ceramic substrates, and high-end applications open up market growth
As optical modules are upgraded to 800G and 1.6T, laser power consumption and heat flow density increase, TEC active temperature control requirements drive the upgrade of substrate materials to aluminum nitride, and drive iteration of metallization processes and product value increases; the CPO architecture is expected to further expand local accurate temperature control scenarios for optical devices. According to data from Hengzhou Chengsi, the global ceramic substrate market is expected to grow from 12.88 billion yuan in 2025 to 32.06 billion yuan in 2032, with a compound growth rate of about 14% from 2026 to 2032. Demand for optical communication, AI computing power, and new energy vehicles will jointly support the expansion of the industry.
The domestic industrial chain is being improved at an accelerated pace, and the integrated layout of powder and substrate helps replace high-end domestic products
The upstream ceramic substrate industry chain includes ceramic powder and manufacturing equipment, etc., and the midstream is the ceramic molding and metallization process. Domestic companies are speeding up independent material supply and manufacturing capacity building. Xuguang Electronics is promoting the integrated layout of aluminum nitride powder, substrates and structural components. Fulade is expanding the DPC ceramic carrier board business through subsidiaries, and China Porcelain Electronics continues to lay out optical communication ceramic tube shells and substrates. Domestic manufacturers are expected to benefit from the increase in downstream demand and the introduction of high-end products.
Risk warning: AI capital expenditure and downstream demand fall short of expectations, uncertainty about technology iteration routes, risk of rising production capacity and customer introduction, risk of domestic substitution process, increased risk of industry competition, etc.