NVIDIA Processors Switch to Thermal Interface Material! SiC Substrate Demand Set to Explode!​

The thermal bottleneck of future AI chips is being overcome by silicon carbide (SiC) substrate materials.

According to overseas media reports, NVIDIA plans to replace the intermediate substrate material in the CoWoS advanced packaging process of its next-generation processors with silicon carbide. TSMC has invited major manufacturers to jointly develop manufacturing technologies for SiC intermediate substrates. This shift addresses the physical limitations of current AI chip performance improvements. As GPU power increases, integrating multiple chips into silicon interposers generates extreme thermal demands, pushing traditional silicon materials beyond their heat dissipation capabilities.

Silicon carbide, a wide-bandgap semiconductor, offers unique advantages in extreme high-power and high-heat-flux environments. Its core benefits in GPU packaging include:

1.​​Enhanced thermal management​​: Replacing silicon interposers with SiC reduces thermal resistance by nearly 70%.

2.​Optimized power architecture​​: SiC enables smaller, more efficient voltage regulator modules (VRMs), shortening power delivery paths and minimizing resistive losses for faster, stable current responses in AI workloads.

This transformation directly addresses GPU power escalation challenges, providing a high-efficiency solution for next-gen processors.

​​Key Advantages of Silicon Carbide​​

•​2–3× higher thermal conductivity​​ than silicon, resolving heat dissipation issues in high-power chips.

•​20–30°C lower junction temperatures​​ for improved stability in high-performance scenarios.

​​Implementation Roadmap & Challenges​​

NVIDIA plans a phased approach:

•​2025–2026​​: First-gen Rubin GPUs will retain silicon interposers while TSMC collaborates with suppliers to develop SiC manufacturing technologies.

•​​2027​​: Full-scale adoption of SiC interposers in advanced packaging.

Key hurdles include:

•​Material hardness​​: Silicon carbide’s diamond-like hardness demands ultra-precision cutting. Non-uniform surfaces from suboptimal cutting render substrates unusable. Japanese firm DISCO is developing next-gen laser cutting systems to address this.

​​Market Outlook​​

•​Early adoption​​: SiC interposers will first appear in flagship AI chips. TSMC’s 7x-mask CoWoS design (launching 2027) will expand interposer area to 14,400 mm², driving substrate demand.

•​Capacity expansion​​: Morgan Stanley forecasts CoWoS monthly capacity to surge from 38,000 12-inch wafers in 2024 to 83,000 in 2025 and 112,000 in 2026, directly boosting SiC interposer demand.

•​Cost trends​​: Despite current high prices, 12-inch SiC substrates are expected to decline to viable levels as production scales.

​​Impact on Downstream Applications​​

•​​Integration density​​: 12-inch SiC substrates offer 90% larger area than 8-inch versions, enabling more Chiplet modules per interposer.

•​​Supply chain synergy​​: TSMC and DISCO are advancing manufacturing R&D, with commercial production slated for 2027.

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Market Reaction​​

On September 5, SiC-related stocks surged 5.76%, led by Tianyue Advanced, Luxi Technology, and Tianshun Shares. Key drivers include:

•NVIDIA’s Rubin processor roadmap.

•SiC’s superior properties: high power density, low losses, and thermal stability.

​​Industry Projections​​

•​Market size​​: Global conductive/mid-insulating SiC substrate markets reached 512M/242M in 2022, projected to hit 1.62B/433M by 2026 (CAGRs: 33.37%/15.66%).

•​Applications​​: Automotive will dominate, accounting for 74% of SiC power devices by 2028.

​​Supply Chain Dynamics​​

•​Leadership​​: Tianyue Advanced (global #2 in conductive SiC), Sanan, and Luxi Technology lead production.

•​​Equipment​​: Domestic firms like NAURA and Jingce hold >60% market share in SiC crystal growth equipment.

​​Risks & Opportunities​​

•​​Technical hurdles​​: Defect density control and 12-inch wafer uniformity remain critical challenges.

•​Cost competitiveness​​: Scaling production and improving yield are essential for mass adoption.

​​Conclusion​​

NVIDIA’s shift to SiC interposers marks a pivotal moment for advanced packaging. While technical and cost barriers persist, the synergy between AI-driven demand and material innovation positions SiC as the cornerstone of next-gen semiconductor infrastructure.

ZMSH specializes in ​​2-12-inch conductive/semi-insulating silicon carbide (SiC) substrate​​ customization and supply, offering tailored solutions for crystal orientation (<100>/<111>), resistivity (10⁻³–10¹⁰ Ω·cm), and thickness (350–2000 μm) to meet power electronics, RF devices, and optoelectronic applications.

We provide ​​advanced precision machining​​ for complex-shaped SiC components, achieving ±0.01 mm tolerances in cutting, grinding, and polishing processes. Our end-to-end technical collaboration spans wafer slicing, surface finishing, and packaging optimization, ensuring compatibility with high-temperature bonding and advanced encapsulation requirements.