Optical Modules Ignite Aluminum Nitride Demand: The "Golden Window" for Domestic Substitution

I. The 1.6T Era Begins: AlN Substrates Emerge as the Critical Bottleneck

With 2026 marking the first year of mass commercialization for 1.6T high-speed optical modules, the global computing power supply chain is undergoing rapid iteration. Market projections for 1.6T module demand have been sharply revised upward from initial estimates of tens of millions of units, reflecting astonishing year-on-year growth.

However, a severe capacity bottleneck has surfaced. Each 1.6T optical module typically requires 2–3 high-end AlN substrates, a requirement alone consuming a massive portion of the global high-end production capacity. As the heat flux density of 1.6T modules triples compared to the previous generation, conventional substrates are no longer viable. This cements AlN ceramic substrates—boasting thermal conductivity of 170–230 W/m·K and a Coefficient of Thermal Expansion (CTE) closely matching semiconductors—as an indispensable necessity.

II. Supply-Demand Imbalance Intensifies, Testing Supply Chain Resilience

The global high-end AlN substrate market is facing a stark supply deficit. Industry forecasts project total demand to exceed 100 million units in 2026, while effective supply struggles to close the gap, leaving a significant and widening shortfall.

Compounding this, supply-side uncertainties persist. Leading Japanese manufacturers have tightened allocation quotas, and coupled with upstream raw material volatility, prices for high-end substrates have surged while delivery lead times have stretched from a standard 8 weeks to several months. Against this backdrop, high-purity aluminum nitride powder suppliers have become strategically vital. Domestic leaders have achieved breakthroughs in the high-purity aluminum nitride market, developing proprietary powders whose purity meets world-class standards, thereby laying a solid material foundation for the domestic substrate industry.

III. Domestic Champions Rise, Unlocking Full Industry Chain Synergy

Constrained overseas supply is accelerating domestic substitution. Leading Chinese AlN substrate manufacturers are operating at full capacity with high utilization rates, aggressively expanding output to meet urgent downstream demand. Several domestic frontrunners have successfully penetrated the supply chains of top-tier global optical module makers and AI computing giants.

This momentum is resonating across the entire value chain. Beyond substrates, aluminum nitride filler factories and thermal management ceramic fillers are witnessing explosive demand, becoming critical materials for AI server cooling solutions. Concurrently, aluminum nitride crucible and aluminum nitride rod suppliers are also reaping the benefits of industry-wide expansion. Driven by global powder shortages and constrained supply from major overseas players, aluminum nitride powder prices remain firm, further cementing the cost and delivery advantages of the domestic supply chain 

IV. Outlook: A Sustained Upswing

Looking ahead, the dual engines of AI and high-speed optical modules will continue to propel AlN demand higher through 2027. The long-standing overseas monopoly is rapidly unraveling. The 2026–2027 period represents a pivotal window for domestic high-end AlN players to capture market share and realize substantial performance growth.

Xiamen Juci manufactures Aluminum Nitride ceramic substrates, Aluminum Nitride powder, and related products. Please contact us if you have any requirements.

Contact: Jenny Qin / 진현혜 

Phone: +86 151-5177-8700

Wechat ID: JENNY-8866

Xiamen Juci Technology Co., Ltd.

Email: qinxianhui@chinajuci.com

Website: www.jucialnglobal.com