Yisheng New Materials Series A for AI Chip Cooling Tech

Yisheng New Materials, a Chinese innovator in advanced thermal management solutions, has successfully closed a Series A funding round, securing tens of millions of yuan. This significant capital injection was spearheaded by Hubble Technology Venture Capital, the investment arm of tech giant Huawei, and co-led by Qihang Industrial Investment Fund, a division of Zhongguancun Development Group. The company intends to leverage these funds to substantially expand its manufacturing capabilities and accelerate the development of its next-generation heat dissipation materials, crucial for the rapidly evolving semiconductor industry.

The core of Yisheng's technological advantage lies in its proprietary metal-based composite materials, engineered for extreme thermal management. Founded in September 2024 by materials science luminary Wu Gaohui, a Fellow of the Asia-Pacific Academy of Materials, the startup has focused on developing unique interface control technologies, near-net-shape forming processes, and cost-effective production methodologies. These advancements are critical as the demand for high-performance computing, particularly in AI, drives semiconductor power consumption to unprecedented levels, necessitating superior heat dissipation.

Yisheng's product portfolio includes cutting-edge composites such as diamond-copper and diamond-aluminum, alongside graphite-aluminum, carbon fiber-aluminum, carbon fiber-magnesium, and silicon carbide-aluminum. These materials are designed to offer an exceptional combination of low weight, high thermal conductivity, and robust strength. The company reports that its diamond-copper composites achieve thermal conductivity figures between 750-980 W/m·K, while its diamond-aluminum variants reach 550-750 W/m·K. These performance metrics, according to Yisheng, outclass offerings from established global players like Sumitomo Electric and Plansee.

The market impetus for Yisheng's technology is undeniable. The exponential growth in AI computing, the widespread adoption of new energy vehicles (NEVs), and the ongoing build-out of advanced telecommunications infrastructure are placing immense thermal stress on semiconductor components. Industry projections suggest the market for diamond-metal ultra-high thermal conductivity materials in China alone could approach 10 billion yuan (approximately $1.4 billion), fueled by demand from AI data centers, next-generation 6G networks, and satellite constellations.

Yisheng differentiates its manufacturing process through a proprietary vacuum pressure infiltration method, achieving near-perfect relative density in its composites. This technique, coupled with advanced tungsten coating thickness control technology, ensures highly conductive interfaces between diamond and metal substrates while mitigating detrimental interfacial reactions. Previously reliant on shared facilities at the national key laboratory of Harbin Institute of Technology for pilot production, the company's strategic expansion includes establishing its own dedicated manufacturing base.

This funding round positions Yisheng New Materials to capitalize on the critical need for advanced thermal solutions in high-growth sectors. The company's focus on materials science innovation, backed by strong investor confidence from Huawei's venture arm and Zhongguancun Development Group, signals a significant development in the supply chain for next-generation electronics and computing infrastructure.