Heraeus announces multi-million euro partnership with Chinese semiconductor specialist CSMH

Reprint from Heraeus:

Heraeus is making a multi-million-euro investment in Compound Semiconductor (Xiamen) Technology Co.,Ltd (CSMH), a China-headquartered material supplier of premium industrial diamond. This strategic partnership aims to drive innovations in the semiconductor industry by leveraging diamond's unique thermal conductivity and electrical insulation properties. Heraeus signed an investment agreement with CSMH and the deal is expected to close in several weeks. As part of the agreement, Heraeus will hold a stake in the company and receive a seat on the board of directors.

Single-crystal diamond is ultra-wideband gap (UWBG) semiconductor material with the highest known thermal conductivity, surpassing existing thermal solutions such as copper by several times. Typical silicon has a thermal conductivity around 140 W/(m-K), copper is about 400 W/(m-K), and diamond has a much higher thermal conductivity up to 2200 W/(m-K). This allows heat to be dissipated more efficiently, enabling high-performance components to endure with maximum efficiency.

In addition to its superior heat dissipation properties, diamond also withstands extremely high voltages without causing an electric breakdown. This is critical for advancing miniaturization, efficiency, and robustness in power electronics.

“This investment reinforces Heraeus’ commitment to cutting-edge material start-ups and emphasizes its strategic focus on the semiconductor market. With CSMH's outstanding diamond wafer technologies, we expect to set new standards to accelerate AI and cloud computing, as well as revolutionize inverter architecture for EVs," said Dr. Steffen Metzger, member of the Heraeus Executive Board.

CSMH's core business includes the production of polycrystalline and large-sized monocrystalline diamonds, which are particularly important for high-end applications in the semiconductor industry. With already 40 patents - consisting of 23 invention patents and 17 utility models – the company has successfully established itself as an innovator and technical specialist.

"We are very excited to partner with a global industry leader like Heraeus to realize our vision to be the world’s advanced compound semiconductor material provider. Being coined as ‘the ultimate semiconductor’, diamond has many excellent performance parameters such as high pressure resistance, large radio frequency, and high-temperature resistance,” noted Zhang Xing, CEO of CSMH. “The expertise that Heraeus has in global market resources, technology insights, and industrial-scale production of advanced materials will empower CSMH to promote diamond for more applications in the near future.”

Due to its exceptional physical and chemical properties, diamond’s other prominent application includes quantum sensors, optics/detection and high-power lasers, among others. CSMH's target customers include major players in aerospace, power electronics, optical communication, Artificial Intelligence, photovoltaics, electric vehicles, and sensors.

Industrial diamonds can be produced in a matter of weeks, at a lower cost and with greater environmental friendliness. The cooperation with CSMH aligns with Heraeus' vision of co-developing next-generation semiconductor solutions and preparing them for use. The combination of CSMH's specialized expertise in diamond materials and Heraeus' global market access promises a successful expansion into international markets.