Listing Success | Frost & Sullivan Congratulates Shenzhen Hongfucheng Advanced Materials Co., Ltd. on Successfully Listing on GEM Market (301716.SZ)
Listing Success | Frost & Sullivan Congratulates Shenzhen Hongfucheng Advanced Materials Co., Ltd. on Successfully Listing on GEM Market (301716.SZ)
Frost & Sullivan
Shenzhen Hongfucheng Advanced Materials Co., Ltd. (Stock Code: 301716.SZ) successfully listed on the GEM market on September 29, 2026. Hongfucheng is a national-level "little giant" enterprise specializing in the research and development and industrialization of advanced electronic functional materials and devices for thermal interface management, electromagnetic shielding, and wave absorption. Its products are widely used in data centers (AI high-power chips, optical modules), intelligent vehicles, 5G communication, and consumer electronics. In the field of thermal interface management, the company is one of the few enterprises in the industry capable of mass-producing graphene heat conduction pads and implementing large-scale applications, and it is directly competing with leading international material companies. Frost & Sullivan (hereinafter referred to as "Frost & Sullivan") would like to extend our warm congratulations on the company's successful listing.
Shenzhen Hongfucheng Advanced Materials Co., Ltd. (hereinafter referred to as "Hongfucheng") successfully listed on the stock market on September 29, 2026, with a total share issuance of 18.730606 million shares, and the issue price per share was 76.86 yuan.
01
Investment Highlights
The company is one of the few enterprises in the industry capable of mass-producing graphene heat conduction pads and implementing large-scale applications, and it is directly competing with leading international material companies.
With innovative products such as graphene heat conduction pads and metal carbon-based composite materials, the company has now joined the global leading AI chip enterprise supply chain for heat conduction interface materials and provides bulk supplies.
The company is also one of the few domestic enterprises that have successfully provided small-scale supply of TIM1 thermal interface materials.
Most of the company's downstream customers are globally renowned chip leaders, consumer electronics manufacturers, brand companies, and new energy vehicle electronics manufacturers.
Frost & Sullivan has long focused on the global and Chinese thermal interface management materials industry, published numerous research reports, and these reports have been widely cited in the prospectuses of leading GEM-listed companies, helping clients accelerate their growth.
02
Overview of the Thermal Interface Management Materials Market
Thermal Interface Materials (TIM) refer to functional materials used between heating devices and cooling components, structural parts, or cooling elements, to fill microscopic gaps at the interface, reduce contact thermal resistance, and improve heat conduction efficiency. From a thermodynamic perspective, even after precise processing, there are often roughness, flatness deviations, and micro-cavities on the surface of electronic devices in contact with radiators, cold plates, metal casings, etc. If directly bonded, a large amount of air will remain in the interface, and since air has extremely low thermal conductivity, it significantly increases interface thermal resistance, reducing the efficiency of heat transfer from chips, power devices, or modules to the outside. The core function of TIM is to replace air with materials with higher thermal conductivity to fill the interface gaps, while improving surface wetting and bonding conditions, establishing a continuous, stable, and low-thermal-resistance heat transfer path, thereby reducing hot spot temperature rise and improving system thermal management efficiency.
03
Global Market Size of Thermal Interface Management Materials and Predictions
Looking at the global market, the thermal interface materials market is showing continuous expansion. From 2021 to 2025, the global thermal interface materials market size increased from 19.48 billion yuan to 30.25 billion yuan, with a compound growth rate of 11.6%, mainly driven by growing demand in data centers and AI servers, new energy vehicles, communication equipment, and high-performance consumer electronics. Among them, the market size of polymer-based composite materials increased from 15.58 billion yuan to 21.17 billion yuan, with a compound growth rate of 8.0%; metal-based thermal interface materials increased from 2.73 billion yuan to 5.75 billion yuan, with a compound growth rate of 20.5%; new carbon-based materials increased from 1.17 billion yuan to 3.33 billion yuan, with a compound growth rate of 29.9%. Polymer-based composite materials remain the dominant players, but metal-based and new carbon-based materials are growing faster, and the market structure is beginning to show an upgrading trend.
In the future, the global thermal interface materials market is expected to continue growing, with the market size expected to increase from 30.25 billion yuan in 2025 to 53.5 billion yuan in 2030, with a compound growth rate of 12.1%. Among them, polymer-based composite materials are expected to increase from 21.17 billion yuan to 26.75 billion yuan, with a compound growth rate of 4.8%; metal-based thermal interface materials are expected to increase from 5.75 billion yuan to 15.52 billion yuan, with a compound growth rate of 22.0%; new carbon-based materials are expected to increase from 3.33 billion yuan to 11.24 billion yuan, with a compound growth rate of 27.6%. As downstream applications require higher thermal conductivity, lower thermal resistance, thinner thickness, and higher reliability, the global thermal interface materials market will show a development trend of both total expansion and structural upgrading, with metal-based and new carbon-based materials expected to be the main drivers of future growth.
Global Thermal Interface Materials Market Size from 2021 to 2030E
Source: Frost & Sullivan Report
04
China's Thermal Interface Management Materials Market Size and Predictions
From the Chinese market perspective, the market size of thermal interface materials is growing rapidly. From 2021 to 2025, the Chinese thermal interface materials market size increased from 6.11 billion yuan to 10.51 billion yuan, with a compound growth rate of 14.5%. Among them, polymer-based composite materials increased from 4.88 billion yuan to 7.36 billion yuan, with a compound growth rate of 10.8%; metal-based thermal interface materials increased from 0.61 billion yuan to 1.24 billion yuan, with a compound growth rate of 19.4%; new carbon-based materials increased from 0.61 billion yuan to 1.91 billion yuan, with a compound growth rate of 33.0%. Polymer-based composite materials remain the dominant players, but metal-based and new carbon-based materials are growing significantly faster, and the material structure is showing an upgrading trend.
In the future, the Chinese thermal interface materials market is expected to continue high-growth trends, with the market size expected to increase from 10.51 billion yuan in 2025 to 19.62 billion yuan in 2030, with a compound growth rate of 13.3%. Among them, polymer-based composite materials are expected to increase from 7.36 billion yuan to 9.81 billion yuan, with a compound growth rate of 4.8%; metal-based thermal interface materials are expected to increase from 1.24 billion yuan to 3.92 billion yuan, with a compound growth rate of 22.0%; new carbon-based materials are expected to increase from 1.91 billion yuan to 5.89 billion yuan, with a compound growth rate of 27.6%. Driven by growing downstream demands for high thermal conductivity, low thermal resistance, thinness, and high reliability, the global thermal interface materials market will show a development pattern of both total expansion and structural upgrading, with new carbon-based and metal-based materials expected to be the main drivers of future growth.
China's Thermal Interface Materials Market Size from 2021 to 2030E
Source: Frost & Sullivan Report
05
Global and Chinese Competition Landscape of Thermal Interface Management Materials
On a global scale, the competition landscape of the thermal interface materials industry shows a clear tiering structure, with a high overall concentration. The first tier mainly includes DuPont, 3M, Dow Chemical, Henkel, and other comprehensive international manufacturers, with the market share of a single manufacturer typically exceeding 8%. These companies usually have global customer coverage capabilities, a complete product portfolio, a stable supply chain system, and strong material engineering and application verification capabilities. They can provide various thermal interface products such as heat conduction pads, heat conduction gels, and phase change materials, and hold a dominant position in high-end application areas such as data centers, AI, automotive electronics, communication equipment, and high-performance consumer electronics. The second tier mainly includes Fritzinger, Shinetsu Chemical, Sinopec, Honeywell, and other manufacturers, with the market share of a single manufacturer typically ranging from 5% to 8%. These companies usually have certain technical accumulations and customer bases in specific material systems, niche product forms, or regional markets, and can form competitiveness in some niche areas through differentiated products or specialized solutions. The third tier mainly includes Parker Hannifin, Maitre, Leidner, Wacker, Hongfucheng, and other manufacturers, with the market share of a single manufacturer typically below 5%. These manufacturers usually focus on specific customers, regional markets, or niche application scenarios, and some companies have already formed certain supporting capabilities in specific product types or downstream fields. Market competition is mainly reflected in product customization, response speed, cost control, and delivery efficiency. As downstream requirements for low interface thermal resistance, long-term reliability, customized development, and large-scale delivery capabilities continue to increase, the global thermal interface materials market share is expected to further concentrate among leading manufacturers with comprehensive capabilities.
Global Thermal Interface Materials Players' Competition Tier (2025)
Source: Frost & Sullivan Report
From the Chinese market perspective, the thermal interface materials industry also shows a relatively clear tiering competition landscape, but compared to the global market, local companies are more involved, and market competition is more diverse. The first tier mainly includes Henkel, 3M, Fritzinger, Sinopec, Hongfucheng, Siquan New Materials, and other manufacturers; from the perspective of a single manufacturer, the market share of these companies is typically above 5%. These companies usually have strong brand influence, a complete product layout, and stable customer resources, and have strong competitiveness in mainstream and high-performance product areas such as heat conduction pads, heat conduction gels, phase change materials, and graphene heat conduction pads. Among them, Hongfucheng has achieved mass production of graphene heat conduction pads and metal carbon-based composite materials and entered the AI data center supply chain, demonstrating its leading capabilities in carbon-based thermal material formulations, process control, and high-end application introduction.
Chinese Thermal Interface Materials Players' Competition Tier (2025)
Source: Frost & Sullivan Report
06
Driving Factors and Development Trends of the Thermal Interface Management Materials Industry
Continued growth in high-power density applications drives rapid increase in thermal management demand
As downstream areas such as data centers and AI servers, new energy vehicles, communication equipment, industrial control, and high-performance consumer electronics continue to evolve towards high power, high computing capacity, and high integration, the heat flux density per unit area of heating devices continues to rise. Thermal management has gradually evolved from a supplementary design aspect to a key factor affecting product performance, operational stability, and service life. Under this background, thermal interface materials, as important thermal conductive media connecting chips, power devices, battery modules, radiators, and structural parts, play a further significant role in the thermal path. Compared with traditional radiators, fans, or cooling systems, thermal interface materials directly act on the front interface of heat transfer. Once there are gaps or high thermal resistance at the interface, even if the back-end cooling capability is sufficient, efficient heat dissipation cannot be achieved. Therefore, as terminal device power consumption continues to rise, new cooling solutions such as liquid cooling become more widespread, and high-performance electronic systems have increasingly stringent temperature control requirements, the market demand for thermal interface materials will continue to grow, driving the industry toward higher performance and reliability.
End-users continue to demand higher reliability, thinner thickness, and mass production compatibility
In addition to thermal performance, the evaluation criteria for thermal interface materials by downstream customers are continuously expanding. The demand for thinner, smaller, and more integrated products in the consumer electronics sector is increasing, requiring thermal interface materials to not only have good thermal conductivity but also possess thinness, flexibility, and compatibility with complex structures. In automotive electronics, communication equipment, and industrial control fields, the stability and reliability of materials under high and low temperature cycles, vibration, impact, humid environment, and long-term continuous operation conditions are emphasized even more. At the same time, as terminal manufacturing develops towards automation, scale, and high consistency, customers' requirements for thermal interface materials in dotting, attachment, cutting, assembly efficiency, and batch production stability are also continuously increasing. It can be seen that the competition logic for thermal interface materials has shifted from a single thermal conductivity parameter orientation to a comprehensive balance of performance, reliability, structural compatibility, and mass production process compatibility. This change not only raises the industry threshold for mid-to-high-end thermal interface materials but also brings greater market opportunities for companies with material development, manufacturing, and application coordination capabilities.
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