China's Synthetic Diamond Finds Its Biggest Opportunity Yet: Cooling AI Chips

The AI chip industry faces significant thermal challenges, with high-performance processors exceeding 1000 watts of thermal energy. An increase of just 10 degrees Celsius can reduce performance by 3 to 5 percent. The solution lies in synthetic diamonds, which offer the highest thermal conductivity. China leads the synthetic diamond market, producing 95 percent of the global total, with an output value exceeding 17 billion yuan by 2025. Diamond composite materials have been utilized in NVIDIA's H200 processor, enhancing performance by 40 percent. Additionally, AMD has launched the MI350X server featuring diamond cooling systems.