China's Superhard Materials Industry Quietly Completes Structural Evolution

As a key foundational material in the industrial system, superhard materials are gradually expanding from traditional processing to high-tech sectors such as semiconductors and new energy. Currently, China has established a relatively complete superhard materials industry system, covering three levels: basic material synthesis, functional product manufacturing, and high-end application.

 

Major listed companies in the industry include China North Industries Group Corporation (CNOOC), Yellow River Cyclone, Power Diamond, Huifeng Diamond, Sinomach Precision Industry, Sifangda, and World.

 

I. Three-Tier Product Echelon: From Basic Materials to High-End Applications

Chinese superhard materials industry has established a clear three-tier product structure:

• 1. Basic synthetic materials: These primarily include high-pressure, high-temperature (HPHT) synthetic diamond, cubic boron nitride (CBN), diamond micropowder, and nanodiamond. HPHT diamond is widely used in grinding and cutting tools, while CBN is primarily used for machining difficult-to-cut materials such as high-temperature alloys. Diamond single crystals or thin films synthesized by chemical vapor deposition (CVD) are primarily used in high-end electronic and heat dissipation devices.
• 2. Functional products: These products, represented by polycrystalline diamond (PCD) and polycrystalline cubic boron nitride (PCBN), encompass various saw blades, grinding wheels, wire drawing dies, diamond wire, and other tool products. These products are widely used in industrial applications such as metalworking, stone cutting, and photovoltaic silicon wafer processing, demonstrating excellent wear resistance and service life.
• 3. High-end application materials: These include CVD diamond films, boron-doped diamond electrodes, and diamond heat sink substrates. These are primarily used in semiconductor manufacturing, optoelectronic devices, medical sensors, and advanced heat dissipation. These products have high technical barriers and significant added value, representing the future direction of the industry.

 

At present, China's superhard materials industry is undergoing a comprehensive transformation from a low-end structure dominated by "grinding and cutting" to a high-value-added field of "high performance, functionalization, and semiconductorization", and is building an industrial ecology based on synthetic technology, with composite manufacturing as the core and terminal applications continuously expanding.

 

II. Transforming Demand Structure: Semiconductors and Optoelectronics Emerge as New Growth Poles

The downstream demand structure is characterized by both diversification and advancement towards higher-end products:

• 1. Metal Cutting Tools: Remaining the largest market share, they are the traditional core application of superhard materials.
• 2. Precision Grinding and Photovoltaic Wafer Cutting: Maintaining steady growth, closely linked to the development of the new energy industry.
• 3. Semiconductors and Optoelectronics: Leading the way (CAGR of approximately 8%), they have become a new engine driving industry growth.

 

Overall, the application focus of superhard materials is rapidly shifting from traditional sectors such as construction and mining to high-tech sectors such as semiconductors, consumer electronics, and new energy. This signals the industry's structural upgrade from a "scale-oriented" approach to one focused on quality and functionality.

 

III. Comparison of Production and Sales Structure: Mature Sectors Show Stability, Emerging Sectors Unlock Potential

From the perspective of production-sales ratios, performance varies across various sub-sectors, reflecting different stages of development and market maturity:

• 1. Diamond Micropowder and Diamond Wire: The production-sales ratio is close to 100%, highlighting strong demand and efficient capacity allocation in mature markets such as photovoltaics and grinding.
• 2. PCD/PCBN Tools and Super-hard Grinding Wheels: The production-sales ratio remains around 95%, demonstrating continued and stable penetration in high-end manufacturing and precision machining.
• 3. CVD Diamond Film: The current production-sales ratio is only 75%, indicating that the industry is still in its early stages of industrialization. Despite rapid capacity expansion, market applications have yet to be fully realized, leaving significant potential.

 

IV. Market Structure: Micropowders Dominate, High-Value-Added Categories Rise Rapidly

From a market perspective:

• 1. Diamond Micropowder: Leveraging its fundamental applications in grinding and polishing, it holds a dominant market share of over 50%;
• 2. PCD/PCBN Tools: Accounting for nearly 20%, PCD/PCBN Tools are rapidly expanding in areas such as CNC machining and new energy vehicle component manufacturing, becoming a key driver of industrial upgrading;
• 3. Superhard Grinding Wheels: Their market share is slightly lower than that of tools, with stable demand in metalworking and electronic ceramics;
• 4. CVD Diamond Film: While its current market share remains below 10%, it has become a high-growth benchmark product as its applications in semiconductors, optoelectronics, and thermal management continue to expand.

 

V. Conclusion: Policy and Innovation Drive the Transformation to High-End Products

Driven by both technological advancements and breakthroughs in applications, China's superhard materials industry is undergoing a structural transformation from raw material production to high-end functional products. With the development of strategic emerging industries such as semiconductors, new energy, and optoelectronics, high-end materials such as CVD diamond films and diamond-based functional devices will see even greater growth, driving the industry's continued upgrading towards innovation-driven, high-value-added development.

 

This article is compiled from the "China Superhard Materials Industry Development Prospects Forecast and Investment Strategy Planning Analysis Report" by the Forward Industry Research Institute.

 

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