1、 Why do AI chips require SiC? As the parameter scale of AI models jumps to the trillion level, the power of GPUs also skyrockets. According to industry data, the power of Nvidia H100 has exceeded 700W, and the next generation Rubin architecture is expected to exceed 1800W, and may even approach the 10000 watt mark after 2030. High power brings high heat. If the heat cannot be exported in a timely manner, the performance of the chip will decrease and the lifespan will be significantly shortened. At present, almost all high-end AI chips adopt TSMC's CoWoS advanced packaging technology, and the Silicon Interposer is the key bottleneck for heat dissipation. The thermal conductivity of the silicon interlayer is low (about 130 W/m · K), and heat is prone to accumulate and form "hotspots"; The structure is fragile and prone to cracking and warping in large-sized packaging; The mismatch in thermal expansion coefficient leads to a decrease in packaging reliability. 2、 Why is SiC the 'best substitute'? Among numerous candidate materials, SiC stands out mainly due to its excellent physical and thermal properties: performance indicators include silicon (Si), silicon carbide (SiC), thermal conductivity of 130 W/m · K490 W/m · K, bandgap width of 1.1 eV, 3.2 eV, breakdown field strength of 0.3 MV/cm3.0 MV/cm, and Vickers hardness of 6.59.5. Its heat dissipation capacity is more than three times that of silicon, which can effectively reduce chip temperature; High mechanical strength, not easy to crack, suitable for large-sized intermediate layers; Compatible with existing chip processes and possessing industrialization foundation. In contrast, although diamond has a higher thermal conductivity (2200 W/m · K), its manufacturing process is not yet mature and difficult to integrate into existing chip processes. 3、 If SiC is adopted, the market will undergo tremendous changes. Currently, CoWoS production capacity is growing at a rate of 58% per year, and is expected to reach 1.37 million pieces per year by 2027. If 70% of the intermediate layers are replaced with SiC, by 2030, the annual demand for 12 inch SiC substrates worldwide will exceed 2.3 million pieces, equivalent to 9.2 million pieces of 6-inch substrates, far exceeding the current global production capacity. 4、 The SiC industrial chain in Chinese Mainland is expected to benefit from the fact that China has formed a complete industrial chain in the SiC field from the background, equipment to extension, and has three major advantages: large investment scale: Tianyue Advanced, Tianke Heda, Jingsheng Electromechanical and other enterprises actively expand production; Cost advantage: Low labor and water and electricity costs, with price competitiveness; Downstream support: China is the world's largest market for new energy vehicles, providing broad application scenarios for SiC. At present, Tianyue Advanced has launched a 12 inch SiC substrate, the SiC long crystal furnace of Jingsheng Co., Ltd. has been sent to TSMC for sampling, and Sanan Optoelectronics has cooperated with STMicroelectronics to build a SiC production line... Chinese enterprises are accelerating their move towards the center of the global SiC stage. 5、 Investment perspective: SiC substrate and equipment companies have great potential. Although the application of SiC in CoWoS is still in its early stages, its trend is clear and the market space is huge. Suggested focus: Substrate companies: Tianyue Advanced, Tianke Heda, Sanan Optoelectronics, Nansha Wafer, etc; Equipment companies: Jingsheng Electromechanical, Jingsheng Shares, Yujing Shares, etc. Conclusion: From electric vehicles to AI chips, SiC is moving from a "power semiconductor" to a "high computing power heat dissipation material". With the promotion of giants such as NVIDIA and TSMC, SiC is expected to become a new standard for advanced packaging after 2027. For China's industrial chain, this is not only an opportunity for technological upgrading, but also a key leap towards achieving "material independence". Kind reminder: The content of this article is based on public research reports and does not constitute any investment advice. The market is risky, and investment needs to be cautious.