From CPUs to Electric Vehicles: IHS' Multi-Industry Chain Applications and Future Outlook

An Integrated Heat Spreader (IHS) is the surface used to make contact between a heatsink or other thermal solution and a CPU or GPU processor.

Integrated Heat Spreader (IHS) - The metal “lid” of the CPU. This serves as a heat sink designed to distribute heat from the processor itself to a CPU cooler, as well as provide protection to the processor inside. This is the part of the CPU that is still exposed after being installed in a motherboard, and is the surface to which you apply thermal paste.

Integrated Heat Spreader (IHS) are one of the fundamental heat dissipation components used in various industries. They are typically made of high thermal conductivity metals such as copper or aluminum. In the electronics industry, heat spreaders or heat sinks are installed on electronic components or chips to transfer or dissipate the heat generated by the components using the thermal conductivity of the heat dissipation material itself. Heat spreaders find wide applications in the electronic information industry, semiconductor industry, and optoelectronic component industry, with downstream applications extending to the 3C industry.

Furthermore, electric vehicles (EVs) and hybrid electric vehicles (HEVs) have become a major trend in automotive development. In the inverters and rectifiers of electric vehicles, high-power chip modules pose thermal dissipation challenges. Currently, the mainstream solution for such designs is to use water-cooled heat spreaders. By utilizing highly thermally conductive metal materials, along with metal processing techniques and surface treatments, the chip temperature can be controlled within an acceptable range using water cooling. The thermal design of water-cooled heat spreaders needs to effectively dissipate the heat generated by the chips, while considering the cost and manufacturability aspects of the design for mass production.

According to the new market research report “Global Integrated Heat Spreader (IHS) Market 2025 by Manufacturers, Regions, Type and Application, Forecast to 2031”, published by Global Info Research, the global Integrated Heat Spreader (IHS) market size is projected to reach USD 1.07 billion by 2031, at a CAGR of 6.6% during the forecast period.

Above data is based on report from Global Info Research Semiconductor Research Center: Global Integrated Heat Spreader (IHS) Market 2025 by Manufacturers, Regions, Type and Application, Forecast to 2031 (published in 2025). If you need the latest data, plaese contact Global Info Research.

Currently, the global heat spreader market is primarily dominated by manufacturers from Japan, the United States, and China Taiwan, with China Taiwan being the largest production region, accounting for approximately 57% of the global market share in 2024. Japan and the United States are also significant production regions, with market shares of 16.7% and 17.1%, respectively, in 2024. Chinese manufacturers entered this field relatively late, with two main players currently holding a combined global market share of 4.98% in 2024, which is expected to grow to 10.25% by 2031.

In terms of materials, copper heat spreaders currently dominate the market, accounting for 89% of the market share in 2024. Due to the design changes in AI chips, heat spreaders have not only become larger and thicker but also shifted materials. Historically, copper was the primary material used for heat spreaders due to its high thermal conductivity of 401 W/m.K, which is higher than that of gold or aluminum, second only to silver. However, heat spreader materials are now moving toward stainless steel, which has higher hardness and is more difficult to process, thus raising the technological barriers for manufacturers. In the coming years, stainless steel-based heat spreader are expected to see faster growth.

Regarding chip sizes, the proportion of large-sized heat spreader products is gradually increasing. Heat spreaders are closely related to chip packaging. In the past, processors required heat spreaders with an area of around 30mm x 30mm. Now, with chip manufacturers enhancing computational speeds and incorporating more memory, the number of bare die (chips) has significantly increased, expanding the area to 60mm x 60mm or larger. In 2024, heat spreaders with sizes greater than 35mm x 35mm will account for approximately 53%, and it is expected to rise to 61% by 2031.

In terms of market application, PC CPU/GPU heat spreaders currently hold the largest market share, accounting for 52% in 2024. However, the server/data center sector is growing at a faster pace, accounting for 35% in 2024 and projected to reach 50% by 2031.

The main global heat spreader manufacturers include Jentech Precision Industrial, Honeywell, Shinko, Fujikura, I-Chiun, Favor Precision Technology, and Shandong Ruisi Precision Industry. The top five global manufacturers are expected to account for approximately 91% of the market share in 2024. In the coming years, competition in this industry is expected to intensify.

For more information, please refer to “Global Integrated Heat Spreader (IHS) Market 2025 by Manufacturers, Regions, Type and Application, Forecast to 2031- Global Info Research”, this report analyzes the supply and demand situation of the industry, the current development status, the industry development and changes, focusing on the industry development status, how to face the industry challenges, the industry's development proposals, the industry's competitiveness, as well as the industry's investment analysis and trend forecast. The report also synthesizes the overall development dynamics of the industry, including the impact of the latest U.S. tariffs on the global supply chain, industry chain supply relationship analysis, and provides reference suggestions and specific solutions for the industry in terms of products.

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