(July 1, 2026) On July 1, 2026, Xinan Group, the leading domestic organic silicone company, and the School of Materials Science and Engineering of Zhejiang University officially announced the major industrialization results: the 45%-60% high phenyl content ultra-high purity phenyl silicone oil 10,000-ton production line jointly researched by the two parties has reached full production, with an annual production scale of 12,000 tons, core performance benchmarks and surpasses leading international companies such as Dow Corning, Wacker, Shin-Etsu, etc., completely ending the decades-long monopoly of overseas manufacturers in the high-end phenyl silicone oil market, and filling the shortcomings of independent and controllable core materials for China's aerospace, semiconductor packaging, new energy high-voltage platforms, nuclear industry and other key fields.
Phenyl silicone oil is a type of special silicone material with wide temperature range, radiation resistance, high insulation, high light transmittance, and anti-aging properties. It can work stably for a long time in the range of - 70℃~380℃. Its unique properties of low volatility, low ionic impurities, and high refractive index make it an irreplaceable new strategic material in extreme working conditions. For a long time, the barriers to the synthesis and purification process of high-end products with ultra-high purity and high phenyl content have been extremely high. Previously, the domestic high-end market's import dependence exceeded 58%, the import delivery cycle was generally as long as 3-6 months, and the price remained high, which restricted the upgrading of the domestic high-end manufacturing industry chain.
This mass production line adopts a self-developed new process of solid acid catalytic synthesis and three-stage molecular distillation coupled purification to break through the common technical pain points of three major industries: batch color difference of high phenyl products, excessive cyclosilicon residue, and insufficient long-term thermal stability at high temperatures. After third-party authoritative testing, the product monomer purity is 99.99%, the total metal ion content is less than 1ppb, the total amount of volatile cyclic impurities D3-D10 is controlled within 200ppm, and the molecular weight distribution index is stable at 1.05-1.2; the performance attenuation after high temperature aging at 250℃ is less than 2.5% for 1,000 hours, and the gamma ray is 10⁶Gy There is no obvious change in the physical and chemical properties under radiation environment, and the refractive index accurately covers the entire range of 1.52-1.58, adapting to the diverse needs of optics and electronics.
At the green production level, the project is equipped with a supercritical carbon dioxide closed-loop synthesis system, which reduces solvent consumption by 95%, VOC emissions by 88%, 100% production waste liquid and solid waste recycling, and the comprehensive energy consumption per unit product is reduced by 30% compared with traditional processes. It complies with the 2026 version of the high-end silicone green manufacturing standards of the Ministry of Industry and Information Technology. It has been successfully selected into the key support projects of the "Key New Materials First Application Demonstration Guidance Catalog" and can enjoy R&D subsidies, tax exemptions, and downstream application supporting policy support.
From the perspective of market application, the dividends of localization substitution have quickly emerged:
New energy vehicle high-voltage platform: The current domestic penetration rate of phenyl silicone oil for domestic 400V models has exceeded 85%. The previous domestic material verification pass rate for 800V high-voltage platforms was only 43%. This new product has passed the third-party long-term reliability test of many leading car companies. The insulation, thermal conductivity, and temperature resistance properties meet the vehicle regulations IATF 16949 standards. Replacing imported raw materials can reduce the overall cost of the supply chain. 22%, and within this year, a number of new high-voltage vehicle models will be introduced in batches for thermal management and IGBT thermal conductive gel systems.
Semiconductor and optoelectronics industry: Ultra-high purity phenyl silicone oil has entered the supply chain of Mini/Micro LED packaging, power chip potting, and flexible OLED optical coatings. Its high light transmittance characteristics can improve the luminous efficiency of the light source and extend the service life of the chip by about 50%. Supporting companies such as Dongyue and Kangpeng have simultaneously launched electronic-grade customized brands. The metal ion index meets the JEDEC international electronic material specification. BOE and domestic leading packaging and testing companies have started batch replacement verification.
Aerospace and commercial aerospace: Adapted to C919 domestic large aircraft engine seals, satellite attitude damping fluids, and spacecraft release agents. The evaporation weight loss in the space vacuum environment is less than 0.01%. The localization rate of domestic commercial satellite launch and space station supporting material procurement has increased to 65%, significantly reducing the procurement cost and delivery risk of special aerospace materials.
High-end medical beauty, precision optics, nuclear industry: Low-irritation biocompatible phenyl silicone oil is used in high-end skin care and long-lasting makeup to improve skin feel and active substance carrying capacity; radiation-resistant models can be used in nuclear power plant seals and precision nuclear instrument damping media, filling the gap in domestic mass production of long-life radiation-resistant silicone oil.
The secretary-general of the China Fluorosilicone Organic Materials Industry Association said at the press conference that statistics from the General Administration of Customs in the first half of 2026 showed that the import volume of high-end industrial phenyl silicone oil fell by 18.7% year-on-year, and the localization rate increased to 61.5%. The launch of this 10,000-ton high-phenyl silicone production line will further increase the overall self-sufficiency rate of the industry. It is expected that the localization rate of high-end phenyl silicone oil will exceed 70% by the end of 2026.
Industry analysts pointed out that the current annual size of the global phenyl silicone oil market is about 1.69 billion US dollars, and the domestic market is expected to reach 16.53 billion yuan in 2026, with an annual growth rate of 10.2%. In the past, foreign capital relied on technology monopoly to control pricing power, and after the stable mass production of domestic high-end products, the global market competition pattern will be reshaped. Domestic manufacturers will rely on their advantages in production capacity, delivery cycle (7-15 days for sample delivery, 30 days for bulk supply), and localized customized R&D to simultaneously accelerate overseas exports. Domestic phenyl silicone oil exports will increase by 11.7% year-on-year in 2025, and the export growth rate is expected to further increase in 2026.
The chief engineer of Xin'an Group introduced that in the next step, the company will work with partner universities to build a digital formula database of phenyl silicone oil, rely on AI algorithms to achieve customized development of directional molecular structures, develop special modified phenyl silicone oil products for cutting-edge scenarios such as ultra-high voltage trams above 1200V, next-generation deep space exploration satellites, and third-generation semiconductor packaging, continue to narrow the verification gap of ultra-high-end brands in the aviation and nuclear industries, and build a high-end phenyl silicone industry cluster that is independently controllable across the entire chain.
The breakthrough in mass production of high-end phenyl silicone oil is a landmark event for my country's new silicone material industry to move from "scale expansion" to "high-end breakthrough". In the context of independent and controllable high-end manufacturing supply chains such as new energy, semiconductors, and aerospace, the localization of special silicone oils not only reduces the costs of downstream companies, shortens the supply cycle, but also eliminates the hidden danger of "stuck necks" in key materials. As green synthesis and high-purity purification processes continue to iterate, the domestic phenyl silicone oil industry will shift from a single product to a new stage of high-quality development that is customized, scenario-based, and high-end.
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