Why is aluminum nitride so expensive？

First, the manufacturing process is extremely challenging.

To achieve high-performance AlN powder, ultra-high-purity raw materials are required, followed by sintering in a high-temperature (above 1800°C) inert atmosphere, which consumes significant energy. The powder is prone to oxidation, and achieving dense sintering is difficult. Special additives must be used, and the process requires precise control, as any defect can cause a sharp decline in key properties such as thermal conductivity. This results in high production barriers and low yield. Moreover, precision machining adds to the cost: with a Mohs hardness of 8–9, AlN’s brittleness makes cutting and drilling prone to chipping and microcracking, leading to low processing yield, rapid tool wear, and high machining costs. Ensuring consistency in mass production remains a major challenge.

Second, its performance is irreplaceable.

AlN combines excellent thermal conductivity (about 10 times that of alumina), a thermal expansion coefficient matching that of silicon, and outstanding electrical insulation. This makes it an indispensable material for heat dissipation substrates and critical packaging in 5G communications, high-power LEDs, aerospace electronics, and next-generation semiconductor packaging. These high-end applications demand exceptional reliability and are less price-sensitive.

Finally, the market is highly concentrated.

The global high-end AlN market has long been dominated by a few Japanese and American companies. Technological barriers limit supply, creating tension in availability. Additionally, AlN is a "small yet critical" strategic material. Its overall demand remains relatively low, making it difficult to achieve significant cost reductions through economies of scale. Amid the current trend toward semiconductor industry self-sufficiency, its strategic importance has further increased, keeping prices high.

Contact:

Xiamen Juci Technology Co., Ltd.

Phone: +86 592 7080230
Email: miki_huang@chinajuci.com
Website: www.jucialnglobal.com