High-purity aluminum nitride powder has shifted from "readily available" to "in short supply."
On the demand side, the Chinese market for AlN-related materials and components in optical communications is projected to grow from approx. RMB 2 billion in 2026 to over RMB 9 billion by 2030—nearly a fivefold increase in four years. On the supply side, leading overseas manufacturers have tightened allocations of high-end electronic-grade AlN powder to China, with lead times extended from 3–4 months to 6–9 months, intensifying supply-demand tension. Prices for high-end AlN powder and ceramic substrates have risen by over 40% overall, reflecting the tightening aluminum nitride market and rising aluminum nitride price.
① Demand Set to Quintuple in Four Years—AI Thermal Management as the Key Driver
Demand for AlN ceramics is not driven by a single sector but by collective growth across five major downstream industries: optical communications, advanced packaging, new energy vehicles (NEV), semiconductor equipment, and high-power RF devices. Total estimated demand is expected to expand from approx. RMB 5 billion (2026) to RMB 28 billion (2030), with a CAGR ranging between 37%–48%.
② Per-Optical-Transceiver AlN Usage Multiplies
As optical transceivers scale from 800G to 1.6T/3.2T, power consumption rises sharply. Ceramic electronic substrates (based on AlN) have become core thermal dissipation components in high-speed modules, improving heat dissipation efficiency by more than 5×. In Co-Packaged Optics (CPO) architectures, AlN substrate content per transceiver can be several times that of lower-end configurations.
③ Japan's Supply Capacity Continues to Tighten
Japanese manufacturers hold a considerable share of the global high purity aluminum nitride market. Following export restrictions on key raw materials (e.g., yttria) to Japan, Japanese suppliers have come under capacity pressure, further tightening the supply side.
④ Domestic Substitution Gains Traction
High-purity AlN powder from leading domestic aluminum nitride powder suppliers has entered the supply chains of tier-one optical transceiver manufacturers. AlN ceramic substrates (for thermal management) are undergoing volume validation with industry leaders. With accelerated AI infrastructure build-out, local enterprises possessing proprietary core technology and vertical integration capabilities are well positioned to capture the window of opportunity left by tightening overseas supply.
The above content is compiled from publicly available industry research data for reference only. Please contact us for any copyright concerns.
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