China's Yisheng raises $14.9M to cool AI chips with diamond composites
What's the deal? Harbin Yisheng New Material TechnologyDealroom has a profile for this one. Try Dealroom → has raised nearly US$13.8M (roughly $14.9 million, FX-converted) in a Series A3 round. Oriza Puhua and Changjiang Innovation co-led, with China Securities Capital, Bangsheng CapitalDealroom has a profile for this one. Try Dealroom →, Fengyuan CapitalDealroom has a profile for this one. Try Dealroom →, and Yinbai Investment joining. Existing backer Xinchuang Fund, under Zhongguancun QihangDealroom has a profile for this one. Try Dealroom →, added more capital.
What does the company do? Founded in September 2024, Yisheng develops high-end metal-matrix composites for cooling high-power chips. Its core products — diamond/aluminium and diamond/copper composites — reach thermal conductivity of 550–750 and 750–980 W/(m·K), which it says tops international rivals such as Japan's Sumitomo ElectricDealroom has a profile for this one. Try Dealroom →.
Who's behind it? Founder Wu Gaohui is an academician of the Asia-Pacific Academy of Materials and built Harbin Institute of Technology's national metal-matrix composites lab. In 2012, his team was the first in China to mass-produce diamond-aluminium composites for satellites.
Why now? AI computing is reshaping the thermal-materials market. "AI technology relies heavily on computing power, and the biggest obstacle to that is thermal control materials," Wu told the publication (translated from Chinese).
The physics is unforgiving. Nvidia GPUs already draw 3,000W per chip and may hit 7,000W; a 2℃ rise cuts reliability by about 10%, and lifespan drops sharply above 80℃. Older tungsten-copper and molybdenum-copper materials top out near 200 W/(m·K), leaving them unable to handle kilowatt-class devices.
What's the endgame? The funding goes to hardware investment and senior hiring. Yisheng runs a "military first, civilian follow" strategy: its products are used in more than 20 satellites, and it is the only domestic supplier of aerospace-grade diamond/aluminium composite series. It is now expanding into electric vehicles, AI data centres, 5G/6G, and optical modules.
What's the moat? Yisheng's edge sits in manufacturing, not formulas. Diamond-copper composites are notoriously hard to shape — hard diamond embedded in soft copper tends to tear out during machining. The company says its proprietary near-net-shaping and liquid pressure infiltration processes form complex parts in one step, with annual capacity above 10 million pieces.
What could go wrong? Wu is candid about competition. "Our lead is only temporary," he said, noting that more than a dozen domestic diamond-copper startups emerged in a single year, requiring constant iteration to stay ahead.
The signal: Fourth-generation thermal materials are moving from aerospace into civilian markets faster than expected. Investors frame diamond composites as shifting from "optional" to "essential" for AI infrastructure — making the chip-cooling layer a new strategic chokepoint in the race for computing power.
Read more: sohu.com
Image credit: Harbin Yisheng New Material Technology
