Thermal Interface Materials for Semiconductor Devices Market | Latest Analysis, Demand Trends, Growth Forecast

AI Accelerator Packaging and High-Power Chips Reshaping Thermal Interface Materials for Semiconductor Devices Market Demand

The Thermal Interface Materials for Semiconductor Devices Market is estimated at nearly USD 3.8 billion in 2026, supported by rising thermal density in AI accelerators, high-bandwidth memory (HBM) stacks, advanced packaging, automotive power semiconductors, and high-performance computing infrastructure. Thermal design power in next-generation AI GPUs has already crossed 1,000W at rack level configurations in hyperscale systems, while advanced processor packages increasingly require thermal conductivity above 8–15 W/mK for reliable heat dissipation. This is changing procurement priorities across semiconductor packaging and electronics manufacturing ecosystems.

In 2025, Taiwan continued to expand advanced semiconductor packaging capacity as AI processor demand accelerated. TSMC increased CoWoS advanced packaging output after major AI chip supply constraints during 2024, directly increasing consumption of thermal greases, phase-change materials, gap fillers, and liquid metal-based thermal interface materials used in high-density packaging assemblies. In South Korea, SK hynix expanded HBM production for AI memory applications during 2025, increasing demand for thermally conductive interface materials across memory packaging and server module integration. The Thermal Interface Materials for Semiconductor Devices Market is also benefiting from rising silicon carbide power semiconductor production in electric vehicles, where operating temperatures are substantially higher than conventional silicon devices.

“Semiconductor heat density is increasing rapidly across AI accelerators, EV power devices, and high-performance computing systems, making thermal management more critical. This keeps Thermal Interface Materials for Semiconductor Devices closely aligned with Boron nitride (BN) films for thermal conductivity used in advanced heat dissipation structures. The market also overlaps with Aluminum nitride (AlN) substrates for power electronics, where thermal stability is essential in high-power applications. Premium thermal materials adoption is additionally supporting integration with Synthetic Diamonds in Consumer Electronics. “

Semiconductor Heat Density Expansion Supporting Higher Consumption of Advanced TIM Formulations

Thermal loads inside semiconductor devices have increased faster than conventional cooling efficiency improvements. AI accelerators, data center processors, RF power devices, and automotive power modules are all operating at elevated junction temperatures, creating larger opportunities for specialized thermal management materials.

Modern AI server architectures now integrate multiple chiplets, HBM stacks, and advanced substrates in compact footprints. Heat flux density in advanced processors frequently exceeds 100 W/cm², while some next-generation accelerator platforms are approaching 200 W/cm² in localized regions. Under these conditions, standard silicone-based greases face limitations related to pump-out, dry-out, and long-term reliability.

The Thermal Interface Materials for Semiconductor Devices Market is increasingly shifting toward:

• Phase-change thermal materials
• Metal-based TIMs
• Carbon-enhanced thermal pads
• Graphite interface sheets
• Silver-filled thermal compounds
• Hybrid polymer TIM formulations
• Liquid metal interfaces for specialized HPC systems

This transition is strongly linked with advanced packaging expansion. In April 2025, Taiwan announced additional investments exceeding USD 5 billion in semiconductor packaging ecosystem expansion tied to AI processor manufacturing. Such projects increase demand for underfill-compatible thermal compounds and lid attach thermal materials used in flip-chip and 2.5D packaging environments.

Advanced packaging is becoming one of the strongest consumption areas for Thermal Interface Materials for Semiconductor Devices. CoWoS, Foveros, fan-out wafer-level packaging, and chiplet integration architectures all create tighter thermal constraints. Semiconductor packages integrating HBM and logic dies require lower thermal resistance between die surfaces and heat spreaders, increasing adoption of high-performance interface materials with conductivity exceeding 12 W/mK.

The market is also gaining momentum from edge AI hardware. Industrial AI modules, edge inference systems, telecom accelerators, and embedded computing systems increasingly require passive thermal management because of compact form factors. This raises utilization of gap fillers and compressible thermal pads in semiconductor modules and PCB assemblies.

Data Center Infrastructure Investments Increasing Thermal Interface Materials Consumption Per Server

The AI data center build-out cycle between 2024 and 2026 has significantly increased semiconductor thermal management requirements. Rack-level power consumption in AI clusters has risen from roughly 15–25 kW in conventional enterprise environments to over 80–120 kW in high-density AI deployments.

In January 2025, Microsoft announced further expansion of AI infrastructure investments exceeding USD 80 billion globally for fiscal-year deployment programs, including semiconductor-intensive AI infrastructure. Higher server density increases the requirement for advanced cooling interfaces between processors, vapor chambers, cold plates, and heat spreaders.

Similarly, Meta Platforms expanded AI data center infrastructure during 2025 with projected capital expenditure exceeding USD 60 billion, increasing demand for high-performance GPU systems and indirectly supporting the Thermal Interface Materials for Semiconductor Devices Market. Every AI accelerator node typically uses multiple TIM layers across processors, HBM stacks, voltage regulators, networking ASICs, and thermal assemblies.

The increase in server shipment value is also influencing material mix evolution. Hyperscale operators are prioritizing long-life thermal stability because thermal degradation directly affects processor throttling and system efficiency. As a result:

Semiconductor Thermal Trend	Impact on TIM Demand
Higher GPU power density	Increased adoption of liquid metal and high-conductivity greases
HBM integration	Greater use of ultra-thin thermal interface layers
Direct liquid cooling systems	Demand for low-bleed and pump-out resistant TIMs
Advanced packaging architectures	Higher consumption of phase-change materials
Compact AI edge systems	Increased use of gap fillers and graphite sheets

The Thermal Interface Materials for Semiconductor Devices Market is therefore expanding not only because of unit shipment growth, but also because the quantity and complexity of thermal materials used per semiconductor system are increasing.

Automotive Power Semiconductor Production Expanding Demand for Thermally Conductive Materials

Automotive electrification is another major contributor. Silicon carbide MOSFETs and IGBT modules generate substantial thermal loads during high-voltage switching operations. EV inverter temperatures frequently exceed operational thresholds seen in traditional automotive electronics, requiring more advanced thermal dissipation systems.

China remained the largest electric vehicle production hub in 2025, supported by rapid expansion in local power semiconductor manufacturing. BYD and several Chinese semiconductor suppliers expanded vertically integrated SiC ecosystems, increasing consumption of thermally conductive gap fillers and interface pads in traction inverter assemblies.

In Germany, Infineon Technologies expanded silicon carbide semiconductor manufacturing investments during 2025 to support growing EV demand across Europe. Higher power density in automotive semiconductors is increasing preference for TIM products with strong mechanical reliability under thermal cycling conditions.

The Thermal Interface Materials for Semiconductor Devices Market is also seeing higher penetration in:

• On-board chargers
• DC-DC converters
• Battery management semiconductor modules
• Autonomous driving processors
• Automotive radar systems
• High-frequency communication modules

Unlike consumer electronics, automotive semiconductor systems require longer operating lifetimes and stronger vibration resistance. This increases preference for non-silicone TIMs and low-volatility formulations designed for reliability over 10–15 year operating cycles.

Material Cost Volatility and Qualification Complexity Remain Key Constraints

Despite strong demand indicators, several operational constraints continue affecting the Thermal Interface Materials for Semiconductor Devices Market.

Silver remains one of the most important conductive fillers in premium thermal compounds. Between 2024 and 2025, industrial silver pricing volatility affected production cost structures for silver-filled TIMs used in high-end semiconductor applications. Graphite and specialty ceramic fillers also experienced pricing fluctuations due to energy-intensive processing requirements.

Qualification cycles remain another barrier. Semiconductor manufacturers typically require extended validation periods before approving new thermal materials because interface reliability directly impacts device yield and operating stability. A single material failure can reduce package reliability across thousands of AI processors or automotive semiconductor modules.

Another challenge is compatibility with advanced packaging processes. Certain high-performance thermal compounds create contamination risks during wafer-level assembly or interfere with underfill adhesion. As semiconductor packaging geometries shrink further, TIM thickness control becomes more critical.

Export restrictions and supply-chain localization strategies are also influencing sourcing decisions. The United States, Taiwan, South Korea, Japan, and China are all increasing investments in domestic semiconductor ecosystems between 2024 and 2026. This regionalization trend is encouraging local procurement of thermal management materials, especially for defense-related and AI semiconductor manufacturing programs.

The Thermal Interface Materials for Semiconductor Devices Market additionally faces technical competition from alternative cooling strategies such as embedded microfluidic cooling, direct liquid cooling, and advanced vapor chamber integration. However, even with evolving cooling architectures, semiconductor devices still require efficient microscopic thermal interfaces between contact surfaces, ensuring long-term relevance for advanced TIM technologies.

Semiconductor Packaging Miniaturization Driving Shift Toward Precision Thermal Interface Engineering

Package miniaturization is changing how thermal materials are designed and applied. Semiconductor manufacturers increasingly require:

• Ultra-thin bond lines
• Low thermal resistance
• Reduced outgassing
• Higher dielectric strength
• Mechanical stress control
• Automated dispensing compatibility

This is especially important in chiplet-based architectures. Multi-die packages create uneven thermal distribution patterns, requiring engineered TIM formulations optimized for localized hotspot management.

Japan continues to maintain strong influence in specialty thermal materials and filler technologies. Several Japanese material suppliers remain important participants in ceramic filler production, synthetic graphite development, and advanced polymer thermal systems used in semiconductor applications. South Korea and Taiwan dominate downstream packaging consumption because of concentration in memory packaging and AI processor assembly.

The Thermal Interface Materials for Semiconductor Devices Market is therefore increasingly linked to semiconductor packaging technology evolution rather than only overall chip shipment growth. Advanced packaging intensity, AI infrastructure spending, automotive electrification, and high-power computing density are collectively determining future material demand patterns.

Asia-Pacific Manufacturing Dominance Concentrating More Than Half of Thermal Interface Materials for Semiconductor Devices Supply

The Thermal Interface Materials for Semiconductor Devices Market remains heavily concentrated in Asia-Pacific because semiconductor fabrication, outsourced semiconductor assembly and test (OSAT), advanced packaging, memory manufacturing, and electronics assembly operations are clustered across Taiwan, China, South Korea, and Japan. In 2026, Asia-Pacific accounts for an estimated 68–72% of global semiconductor-focused thermal interface material consumption and more than 65% of production output by volume.

Taiwan alone represents one of the largest downstream consumption centers due to concentration of advanced packaging capacity. TSMC’s CoWoS expansion programs during 2024 and 2025 significantly increased procurement of thermal greases, phase-change materials, lid attach compounds, and high-conductivity interface pads used in AI accelerator packaging. During 2025, Taiwan continued adding advanced packaging lines to address AI GPU shortages, increasing thermal material intensity per package because HBM-integrated AI processors require multi-layer heat transfer structures.

South Korea remains heavily concentrated in memory-related thermal interface material demand. Samsung Electronics and SK hynix expanded HBM and advanced DRAM production during 2025, increasing utilization of thermal interface compounds in memory stacking and AI server integration. South Korea contributes an estimated 18–20% of total semiconductor-grade thermal interface material demand globally, despite its smaller geographic footprint, because of extremely high concentration in advanced memory manufacturing.

China dominates large-volume electronics and power semiconductor thermal material consumption. The country continues expanding domestic semiconductor manufacturing under localization initiatives focused on automotive semiconductors, industrial power devices, analog chips, and mature-node manufacturing. During 2025, multiple Chinese provinces increased semiconductor manufacturing investments exceeding USD 40 billion collectively across packaging, wafer fabrication, and power electronics ecosystems. This has strengthened demand for silicone gap fillers, thermally conductive adhesives, and ceramic-filled interface materials used in automotive and industrial electronics.

Japan continues to play a critical upstream role in specialty fillers and high-performance material formulations. Japanese suppliers maintain strong positioning in:

• Synthetic graphite
• Boron nitride fillers
• Aluminum nitride ceramics
• High-purity silicone matrices
• Specialty polymer thermal compounds

Many advanced semiconductor TIM formulations depend on Japanese-origin filler technologies because thermal conductivity consistency and particle morphology remain critical for semiconductor packaging reliability.

Thermal Interface Materials for Semiconductor Devices Market Segmentation Highlights by Material and Device Category

Segmentation Highlights

By Material Type

• Thermal Greases and Pastes
• Phase Change Materials
• Gap Fillers
• Thermal Pads
• Metal-Based TIMs
• Graphite and Carbon-Based TIMs
• Thermally Conductive Adhesives

By Semiconductor Device Type

• AI Accelerators and GPUs
• CPUs and HPC Processors
• Memory Devices and HBM
• Power Semiconductors
• RF and Telecom Devices
• Automotive Semiconductor Modules
• Consumer Electronics ICs

By Packaging Technology

• Flip-Chip Packaging
• 2.5D and 3D Packaging
• Fan-Out Wafer-Level Packaging
• System-in-Package (SiP)
• Chiplet Architectures

By End Use

• Data Centers
• Automotive Electronics
• Consumer Electronics
• Industrial Automation
• Telecommunications Infrastructure
• Aerospace and Defense Systems

Thermal greases and pastes continue holding the largest share in the Thermal Interface Materials for Semiconductor Devices Market because they remain widely deployed across processors, memory devices, networking ASICs, and power semiconductor modules. In 2026, greases and pastes account for nearly 34–36% of overall semiconductor TIM consumption value.

However, graphite and carbon-based TIMs are recording faster growth due to increasing use in AI accelerators and compact edge computing systems. High thermal conductivity synthetic graphite sheets are increasingly integrated into semiconductor substrates and advanced cooling assemblies because localized hotspot density continues increasing in chiplet architectures.

Metal-based TIMs are gaining adoption in ultra-high-performance AI systems. Liquid metal formulations based on gallium alloys are being evaluated for specialized HPC environments where thermal resistance reduction becomes critical for performance optimization. Adoption remains limited compared with traditional silicone-based TIMs because of handling complexity and compatibility considerations, but premium AI hardware environments are driving gradual commercialization.

Semiconductor Packaging Expansion Shifting Regional Supply Chains Toward Taiwan and South Korea

The center of demand for Thermal Interface Materials for Semiconductor Devices has increasingly shifted toward advanced packaging ecosystems rather than only wafer fabrication. Taiwan controls a dominant share in advanced AI packaging output, while South Korea leads in HBM memory integration.

During March 2025, TSMC announced continued expansion of advanced packaging capacity in Taiwan to support AI semiconductor customers. The increase in CoWoS output substantially raised procurement requirements for:

• High thermal conductivity lid attach compounds
• Underfill-compatible TIMs
• Vapor chamber interface materials
• Thermal compression bonding materials

The packaging intensity per semiconductor device is increasing. Advanced AI processors use significantly higher TIM volume compared with conventional CPUs because thermal dissipation requirements are higher across stacked memory and chiplet assemblies.

Malaysia and Vietnam are also gaining importance in OSAT and electronics assembly operations. Malaysia continues expanding semiconductor backend manufacturing supported by foreign direct investments in packaging and test operations. During 2025, several semiconductor assembly expansions in Penang strengthened regional demand for thermal pads and gap fillers used in automotive and industrial semiconductor modules.

Vietnam is emerging as a secondary electronics thermal material consumption center because of growth in smartphone, networking equipment, and electronics assembly manufacturing. Increased exports of electronics hardware from Vietnam are indirectly supporting regional procurement of thermally conductive interface materials.

North America Expanding High-Value Thermal Interface Material Demand Through AI Infrastructure Growth

North America represents a smaller share of manufacturing volume but commands high-value demand because of concentration in AI processor development, cloud infrastructure, and advanced computing systems.

In 2025, NVIDIA’s AI accelerator shipments continued expanding alongside hyperscale AI server deployment. Advanced GPUs and AI accelerators require significantly higher thermal conductivity performance than traditional enterprise processors. This has increased demand for premium semiconductor thermal interface materials optimized for:

• High heat flux transfer
• Long operational stability
• Reduced thermal resistance
• Minimal pump-out degradation

The United States also increased semiconductor manufacturing incentives through CHIPS Act-linked investments. Intel, Micron, and TSMC Arizona continued expanding fabrication and packaging programs during 2025. These investments collectively exceed tens of billions of dollars and are increasing local demand for semiconductor-grade thermal materials across fab equipment, packaging lines, and advanced substrate integration.

Micron’s memory manufacturing expansion in the United States is particularly relevant because HBM and advanced memory systems require tightly controlled thermal management layers. Memory-intensive AI hardware platforms generate higher localized temperatures, increasing reliance on thermally conductive interface compounds.

Power Semiconductor Production Driving Strong TIM Consumption in Automotive Electronics

Power semiconductor modules represent one of the fastest-growing application areas in the Thermal Interface Materials for Semiconductor Devices Market. Silicon carbide and gallium nitride devices operate at higher switching frequencies and elevated temperatures, increasing demand for reliable thermal transfer systems.

China accounted for more than 55% of global electric vehicle production volume during 2025, strengthening semiconductor thermal material demand across traction inverters, onboard chargers, and battery management systems. EV power modules require thermally conductive pads and interface compounds capable of withstanding repeated thermal cycling.

European automotive semiconductor manufacturing also expanded during 2025. Germany continued investing in power electronics and automotive chip manufacturing capacity, supporting demand for non-silicone thermal interface materials with improved reliability characteristics for long-life automotive applications.

Wide-bandgap semiconductor adoption is increasing thermal requirements across:

• Fast EV charging infrastructure
• Renewable energy inverters
• Industrial motor drives
• Data center power systems
• Telecom power management hardware

These applications generate higher thermal stress than conventional silicon electronics, increasing material consumption intensity per module.

Demand Trend and Adoption Statistics Across AI Servers, Automotive Electronics, and Advanced Packaging

Demand growth in the Thermal Interface Materials for Semiconductor Devices Market is increasingly tied to AI computing density and advanced packaging adoption rather than traditional consumer electronics volumes alone. AI server shipments increased sharply during 2025, with hyperscale operators deploying large GPU clusters requiring advanced cooling architectures. Semiconductor devices used in AI systems now consume multiple layers of thermal interface materials across processors, memory stacks, networking chips, and cooling assemblies.

HBM demand growth above 40% during 2025 substantially increased thermal material adoption because stacked memory architectures require improved heat dissipation efficiency. Automotive silicon carbide semiconductor adoption also accelerated, with EV inverter penetration continuing to rise across China, Europe, and North America. In parallel, advanced packaging technologies including 2.5D integration, fan-out wafer-level packaging, and chiplet architectures are increasing thermal interface material consumption per semiconductor package. This combination of AI infrastructure growth, advanced memory expansion, and automotive electrification is raising both unit demand and average material value across the semiconductor thermal management ecosystem.

Advanced Packaging Material Suppliers Competing for Share in Thermal Interface Materials for Semiconductor Devices Market

The Thermal Interface Materials for Semiconductor Devices Market remains moderately consolidated at the high-performance semiconductor grade level, although broader industrial thermal material supply remains fragmented. The leading participants are concentrated in Japan, the United States, South Korea, Germany, and Taiwan, mainly because advanced semiconductor packaging ecosystems, specialty filler technologies, and high-purity formulation capabilities are concentrated in these regions.

In 2026, the top six to eight manufacturers collectively account for nearly 48–54% of global semiconductor-focused thermal interface material revenue. Market concentration is higher in premium AI server, HPC processor, automotive power semiconductor, and advanced packaging applications where thermal conductivity, reliability validation, outgassing control, and long-term thermal cycling performance remain critical.

Major suppliers competing in the Thermal Interface Materials for Semiconductor Devices Market include:

• Shin-Etsu Chemical
• Henkel
• DuPont
• Parker Hannifin (Chomerics)
• Laird Thermal Systems
• Panasonic Industry
• 3M
• Momentive Technologies
• Indium Corporation
• Dow

Shin-Etsu Chemical continues holding a strong position in semiconductor-grade silicone thermal interface materials because of its deep integration into semiconductor packaging ecosystems across Japan, Taiwan, South Korea, and China. The company’s thermal silicone compounds are widely used in processors, memory devices, and automotive semiconductor assemblies where low bleed and long-term thermal stability are critical.

Henkel maintains significant share through its Bergquist product portfolio and semiconductor packaging materials business. The company supplies thermally conductive gap fillers, phase-change materials, and thermal adhesives used in automotive power modules, telecom electronics, and AI server assemblies. Henkel’s position strengthened further as advanced automotive electronics and AI accelerator thermal density increased during 2025.

DuPont remains influential in high-performance thermal management materials used in advanced electronics and semiconductor packaging applications. The company’s semiconductor-focused material ecosystem spans adhesives, dielectric materials, and thermally conductive solutions used in high-density electronics integration.

Thermal Interface Materials for Semiconductor Devices Market Share by Leading Players and Packaging Ecosystem Position

The competitive landscape is shaped less by raw material scale and more by formulation capability, semiconductor qualification standards, and packaging ecosystem relationships. AI accelerator manufacturers and semiconductor packaging companies typically require long validation cycles, creating high barriers for smaller entrants.

Estimated 2026 market share structure in semiconductor-grade TIM applications:

Manufacturer	Estimated Semiconductor TIM Market Share Range	Major Strength
Shin-Etsu Chemical	12–15%	Semiconductor silicone TIM formulations
Henkel	10–13%	Automotive and industrial thermal systems
DuPont	7–10%	Advanced electronics materials integration
Parker Hannifin (Chomerics)	5–7%	EMI and thermal management solutions
Panasonic Industry	4–6%	Graphite and thermal sheet technologies
Indium Corporation	3–5%	Metal-based and specialty thermal interfaces
Dow	3–5%	Silicone-based thermal compounds
3M	2–4%	Thermal pads and electronics materials
Regional Asian suppliers	25–30% combined	Cost-competitive packaging materials

Taiwanese and Chinese regional suppliers are expanding aggressively in mid-range thermal interface materials for semiconductor packaging and consumer electronics applications. However, premium AI server and automotive semiconductor programs remain dominated by suppliers with long-term reliability credentials and advanced filler technologies.

The Thermal Interface Materials for Semiconductor Devices Market also shows increasing specialization by application category:

• AI accelerators favor ultra-high conductivity greases and phase-change compounds
• Automotive power semiconductors prioritize vibration-resistant TIMs
• HBM packaging requires ultra-thin thermal interface layers
• Telecom infrastructure emphasizes long-life thermal stability
• Industrial automation systems prioritize thermal cycling reliability

This segmentation is changing competitive dynamics because no single supplier dominates every thermal interface material category.

AI Server Expansion Increasing Demand for High-Conductivity Product Lines

AI infrastructure growth between 2024 and 2026 substantially altered supplier priorities. Semiconductor packages used in AI accelerators require thermal conductivity levels significantly above traditional enterprise electronics standards.

Indium Corporation increased industry visibility through liquid metal and metal-based thermal interface solutions targeted toward high-performance computing systems. Products such as liquid metal TIMs and high-conductivity solder interfaces are gaining evaluation in premium AI and HPC cooling environments where heat density is becoming a major limitation.

Panasonic Industry strengthened positioning in graphite-based thermal materials used in compact electronics and advanced semiconductor assemblies. Graphite sheet adoption is increasing in AI edge systems and compact high-density electronics because of lightweight thermal spreading advantages.

Dow and Momentive continue focusing on silicone-based thermal compounds optimized for semiconductor reliability and power electronics applications. Automotive electrification has increased demand for low-volatility silicone TIMs capable of surviving aggressive thermal cycling conditions in EV powertrain systems.

The Thermal Interface Materials for Semiconductor Devices Market is also seeing rising competition from specialized Asian manufacturers focused on:

• Boron nitride-filled compounds
• Aluminum nitride thermal materials
• Graphene-enhanced thermal compounds
• Low-outgassing packaging TIMs
• Advanced thermal pads for AI servers

China-based thermal material suppliers expanded capacity during 2025 to support domestic semiconductor localization initiatives. Several local players increased focus on automotive and industrial semiconductor thermal applications rather than competing directly in the highest-performance AI packaging segments.

Thermal Interface Materials for Semiconductor Devices Adoption Trends Across AI, Automotive, and HBM Packaging

HBM memory integration became one of the most important growth areas for thermal interface suppliers during 2025. HBM stacks create concentrated thermal loads because multiple DRAM dies are vertically integrated beside high-power AI processors. This has increased use of thin bond-line TIMs and high thermal conductivity interface materials.

SK hynix and Samsung Electronics expanded HBM-related manufacturing during 2025, directly increasing procurement opportunities for semiconductor-grade thermal interface suppliers integrated into advanced memory packaging ecosystems.

Automotive semiconductor adoption trends also continue shifting supplier strategies. Silicon carbide power module demand increased strongly during 2025 as EV production expanded in China, Europe, and North America. Thermal interface suppliers increasingly market products specifically optimized for:

• High-voltage inverter modules
• Fast charging systems
• Battery control electronics
• ADAS semiconductor systems

Reliability testing has become a major competitive differentiator. Automotive-grade TIM suppliers now compete based on thermal cycling endurance, resistance to pump-out effects, and long-duration operating stability rather than only thermal conductivity performance.

Recent Industry Developments and Semiconductor Thermal Materials Expansion Timeline

• In March 2025, TSMC continued expanding CoWoS advanced packaging capacity in Taiwan to support AI processor demand, increasing downstream demand for semiconductor thermal interface compounds and advanced packaging thermal materials.
• In April 2025, SK hynix accelerated HBM production expansion linked to AI memory demand growth, strengthening procurement requirements for ultra-thin thermal interface materials used in stacked memory packaging.
• In January 2025, NVIDIA supply-chain partners increased AI server production targets following strong hyperscale AI infrastructure spending, creating higher demand for premium thermal greases, phase-change materials, and graphite-based thermal spreaders.
• During 2025, multiple Chinese semiconductor material suppliers expanded thermal material production targeting automotive and industrial semiconductor applications under domestic semiconductor localization initiatives.
• In February 2025, several EV semiconductor ecosystem investments across Germany and China increased silicon carbide module production capacity, strengthening demand for thermally conductive interface materials used in high-temperature automotive electronics.