Let me tell you something, you may not believe it – ceramics used in toilets and tiles have recently gone crazy in the A-share market.
Don’t laugh, this is true.
Kexiang shares hit the daily limit of 20cm, China Ceramics Electronics continued to rise, and Saiying Electronics followed suit.
The entire concept of ceramic substrates is rising like a drug.
Many people are confused: Ceramics?
Isn’t that for decoration?
Has anything to do with semiconductors?
The relationship is serious.
Today I will break this matter apart and explain it clearly to everyone.
Those who understand it may seize the next main line; those who do not understand it may continue to eat noodles in traditional PCBs.
1. The chip is too hot, so hot that the plastic cannot bear it
Let’s talk about common sense first.
Everyone knows that the chip generates heat when it is working.
But what you may not know is that the power consumption of Nvidia’s new generation chips has reached 2850 to 3000 watts.
What is the concept of 3000 watts?
An induction cooker only has 2000 watts.
A chip is hotter than your induction cooker.
The thermal conductivity of epoxy resin PCB boards used for traditional chip packaging is lower than 1W/m·K.
What does it mean?
It’s just that the heat can’t be conducted out at all.
When the temperature is high, the PCB board will warp and melt, and the chip will be directly destroyed.
What to do?
Change materials.
Metal conducts heat well, but it conducts electricity, and the chip will burn directly if there is a short circuit.
Plastic insulates, but it cannot withstand high temperatures.
Ceramics became the only answer.
The thermal conductivity of aluminum nitride ceramics is 200W/m·K, and specific silicon nitride can reach 300W/m·K.
It is 300 to 500 times better than traditional resin.
Moreover, the thermal expansion coefficient of ceramics matches that of silicon almost perfectly, so the chip will not collapse due to thermal expansion and contraction.
So what you see now is that it has become an industry consensus that ceramic substrates replace traditional PCBs.
Two or three data will tell you how big this market is
Don’t lie to me, just give me the hard data.
The first data: The global HTCC ceramic substrate market sales are expected to be 22.6 billion yuan in 2026, and will reach 35.4 billion yuan by 2032.
The global semiconductor ceramic packaging materials market will be approximately US$7.803 billion in 2025 and is expected to reach US$12.35 billion in 2032.
Second data: In the field of optical modules, the total market size of ceramic components will be approximately 13.5 billion yuan in 2026, and will soar to 20 to 22 billion yuan in 2027.
The compound annual growth rate exceeds 60%.
The third data: China Ceramics Electronics’ aluminum nitride film substrates are already in short supply.
Production capacity will expand from 20 million pieces/month at the end of 2025 to nearly 60 million pieces/month in May 2026.
Supply exceeds demand, production capacity doubles, and prices skyrocket—isn’t this the standard script before the main rise?
3. The turning point has been reached, and three signals are on at the same time
Many people ask: Can I still pursue it now?
My answer is: This is not a question of whether to pursue it or not, but a question of whether the turning point has arrived.
Signal 1: The inventory removal cycle is over.
The operating rate of packaging and testing plants has been declining before, and upstream material orders have also shrunk.
By the second quarter of 2026, this destocking cycle will be completely over.
Global chip inventory turnover days have fallen to a three-year low.
When inventory is low, replenishment is coming.
Signal 2: Overseas supply is shrinking.
Starting from March 2026, Kyocera will reduce its high-end optical module ceramic packaging production capacity by 25% to 30%, and its raw material inventory will only be enough to last 10 to 15 days.
Two Japanese tungsten hexafluoride manufacturers suspended production on July 1.
Overseas giants are cutting production, and domestic companies are filling in the blanks.
Signal 3: Policies are being pushed forward.
The “Guidance Catalog for Industrial Structural Adjustment (2024 Edition)” lists ceramic substrates as encouraged categories.
The “Catalogue of the First Batch Application Demonstration Projects of Key New Materials” lists AMB ceramic copper-clad laminate as an advanced basic material.
Five departments including the Ministry of Industry and Information Technology have listed “advanced ceramic substrate materials” as a “foundation-building” project for basic product reliability.
The country is setting priorities for you, but you can’t see it?
4. Related companies, only a few with real products
China Ceramics Electronics (003031): The domestic leader in optical communication ceramic shells and substrates. Its share in Zhongji InnoLight’s supply chain is expected to jump from 20% in 2025 to more than 50% in 2026.
Aluminum nitride film substrates are in short supply, and silicon carbide MOSFETs are already in mass production at leading car companies.
Saying Electronics (920181): The “little giant” of power semiconductor ceramic packaging on the Beijing Stock Exchange, revenue in 2025 will increase by 31% year-on-year.
The ceramic tube shell and the packaging heat dissipation substrate walk on two legs.
Xuguang Electronics: Brokerage research reports continue to recommend ceramic substrates as the core target.
Kexiang Co., Ltd. (300903): Comprehensive layout of ceramic material applications in the AI direction, Guangzhou Ceramics has made a key breakthrough in low dielectric constant silicon nitride materials.
On June 17, it just hit the daily limit of 20cm.
China Ceramics Materials: the upstream leader in ceramic powders and the core supplier of MLCC raw materials.
Feikai Materials: Invests in Jingdezhen Naichuang Ceramics, which specializes in precision ceramic substrates.
Jinbo Co., Ltd.: For high-purity aluminum nitride powder, a demonstration production line with an annual output of 500 tons will be built in June.
Jiangfeng Tongxin: A project with an annual output of 7.2 million copper-clad ceramic substrates. The first product was rolled off the production line in May, with a total investment of 500 million yuan.
5. A final word of truth
Institutions predict that the fourth quarter of 2026 will be a key turning point for the ceramic substrate industry. Related companies are expected to mass-produce and supply automotive-grade products, and the industry is expected to switch from “thematic investment” to “performance-driven.”
Translated into human words: It may still be a concept of speculation now, but starting from the fourth quarter, it may actually produce results.
Of course, there are risks – industrialization falls short of expectations, downstream demand fluctuates, and competition intensifies.
There are risks in the stock market, so you need to be cautious when entering the market. Needless to say, this needs to be said.
But the direction is clear: chips are getting hotter and hotter, and ceramics are increasingly in demand.
No one can overturn this logic in the short term.
