September 16, 2025
When we think about ever-more powerful chips for artificial intelligence, the focus is usually on transistors, lithography nodes, or 3D packaging. But behind the scenes lies an equally crucial challenge: heat management.
This is where TSMC, the world’s largest chip manufacturer, has decided to make its next strategic move. The company is leading an initiative with industrial partners to develop 12-inch monocrystalline silicon carbide (SiC) thermal substrates, capable of reaching conductivities up to 500 W/mK. This is a revolution compared to traditional materials like alumina, sapphire, or ceramics, which are limited to 200–230 W/mK.
In recent years, TSMC has also invested in gallium nitride (GaN). But with growing competition—particularly from China—the Taiwanese giant now plans to gradually exit this segment by 2027.
This strategic choice frees up valuable resources to focus on silicon carbide, already a star material in power semiconductors and automotive systems thanks to its robustness and ability to withstand high temperatures.
Beyond electric vehicles and energy, TSMC is now targeting new frontiers such as:
The company is exploring two main approaches:
With thermal conductivity ranging from 400 to 500 W/mK, SiC performs at nearly twice the level of commonly used ceramics. It is also more reliable and robust than diamond, which remains too costly and complex to scale up.
In a world where heat density rises with 2.5D and 3D architectures, dissipation becomes a differentiator. And while alternative solutions like liquid metal, conductive gels, graphene, or microfluidic cooling show promise, 12-inch SiC stands out as the most scalable and realistic option in the near to mid-term.
This challenge isn’t TSMC’s alone. Intel, for example, is working on backside power delivery (BPD) to boost efficiency and density—proof that thermal and power management are now inseparable.
But by scaling up SiC substrates to 12 inches, TSMC aims to redefine the paradigm: not only dissipating heat more effectively, but doing so with a material that is scalable, robust, and ready for the AI workloads of the future.
TSMC’s move into 12-inch silicon carbide is not just a technical decision—it’s a competitive strategy. In a market where chips must process more data, consume less energy, and withstand extreme temperatures, thermal management is the new battleground.
And with this bet, TSMC intends to retain its leadership, setting the standards for AI datacenters, advanced packaging, and the next generation of immersive technologies.
