(July 20, 2026) Recently, a leading domestic special silicone company independently built and designed a continuous complete production unit for high phenyl content and low volatile phenyl silicone oil with an annual production capacity of 27,000 tons, successfully completing 168 The product has been fully assessed for steady-state operation at full load for hours, and all core indicators of purity, temperature resistance, and radiation resistance of the product have all met the standards. This marks that China has completely broken the long-term technology monopoly of overseas companies in the field of ultra-high phenyl silicone oil, and achieved independent control over the supply of key materials in strategic fields such as aerospace, nuclear fusion, and semiconductor liquid cooling.
As the core material of high-end modified silicone, phenyl silicone oil is distinguished from ordinary methyl silicone oil by virtue of its excellent high and low temperature resistance (-70°C ~ 300°C), resistance to γ-ray radiation, high insulation, high refractive index, and low volatility. It is an irreplaceable basic raw material in six major fields: aviation power lubrication, chip immersion liquid cooling, nuclear fusion device thermal protection, high-end optical coating, new energy motor insulation, and medical beauty cosmetics. For a long time, the production process and precision distillation and purification technology of high-purity products with phenyl moles accounting for more than 45% have been blocked by overseas giants. The domestic high-end field has long relied on imports, and there are hidden dangers in supply chain security.
The new continuous production line put into operation this time adopts independently developed three-stage molecular distillation purification and micro-channel precision polymerization processes, which can achieve flexible customized production with a phenyl molar content ranging from 12% to 65%. Among them, more than 50% of the ultra-high phenyl brand products have a total metal ion content controlled within 5ppb, cyclosiloxane D4 and D5 residues less than 10ppm, batch viscosity fluctuation error controlled at ±2%, and a comprehensive purity of 99.98%. Their performance benchmarks and partially surpasses similar imported products from Dow Corning, Shin-Etsu, and WACKER, and has obtained Level 3 compliance certification for REACH, SEMI semiconductor materials, and aerospace materials.
Synchronous implementation of applications in multiple high-end fields, speeding up domestic substitution
Technological breakthroughs directly drive batch introduction in many downstream industries. Orders in the second quarter of this year increased by 72.4% year-on-year:
1.Controllable nuclear fusion energy: Modified high phenyl silicone oil completed the 1,200-hour full-power plasma discharge test of the new generation tokamak device. As a thermal protection lubricating medium for the divertor, its resistance to neutron radiation and high temperature decomposition performance set a new domestic material record, filling the gap of high-temperature silicone oil dedicated to domestic fusion devices;
2.AI chip immersion liquid cooling: Low-ion high-purity phenyl silicone oil is supplied in batches to domestic leading computing power manufacturers for immersion cooling of high-power GPUs and servers. Compared with traditional cooling media, the thermal conductivity stability is improved by 30%. The insulation safety level meets the long-term operation standards of high-density computing power computer rooms. Leading silicon companies are simultaneously expanding the production line of modified phenyl silicone oil dedicated to liquid cooling;
3.Aerospace and precision equipment: Medium and high phenyl silicone oil is delivered in batches to lubrication packages for aircraft bearings and small turbofan engines. Under extreme temperature difference conditions, volatilization loss is reduced by 42% compared with traditional lubricants, extending the maintenance cycle of aircraft; high-temperature lubrication grades for wind power gearboxes have become the designated raw materials for many leading wind power companies, and the market share in the market segment has steadily increased;
4.High-end cosmetics and medical materials: Low-irritation and high-compatibility phenyl silicone oil is suitable for lipstick, sunscreen, and repair essence. It has outstanding film-forming gloss, waterproof and breathable advantages. With the implementation of the new safety standards for cosmetic silicone raw materials, the penetration rate of high-purity low-cyclic phenyl silicone oil continues to increase; biocompatible modified models have entered the supply chain of medical catheters and optical lens coatings.
The industry structure is optimized, and the market size is expected to exceed 16.5 billion yuan in 2026
According to the latest data from industry research organization Boyan Consulting, the overall domestic phenyl silicone oil market size will be 15 billion yuan in 2025, a year-on-year increase of 10.2%. The domestic self-sufficiency rate will rise to 92.7%, and import volume will decline 8.9% year-on-year. The full-year market size is expected to reach 16.53 billion yuan in 2026. Electronic packaging, computing power liquid cooling, and new energy vehicles will become the core growth engines. Annual consumption in the electronics field alone can reach 6.4 million tons, with an output value exceeding 7.1 billion yuan.
The industrial side shows a clear structural transformation: leading companies such as Hoshine Silicon, Dongyue Silicon Materials, and Xin'an Co., Ltd. continue to shut down low-end general-purpose silicone oil production lines and concentrate resources on the deployment of electronic-grade, high-phenyl special silicone oil. The gross profit margin of high-end products can reach more than 40%, which is much higher than the profit level of general-purpose silicone oil of less than 10%. The market concentration ratio CR5 of the top five companies in the industry is expected to increase to 76.2% by the end of the year. The clearance of small, medium and low-end production capacity is accelerating, and the industry is developing in the direction of high purity, customization, green and low VOC.
At the policy level, the "Action Plan for the Industrialization of Advanced Silicone Functional Materials (2025-2027)" lists phenyl silicone oil as a strategic key new material, and provides special subsidies and tax incentives for high-end production line technical transformation and R&D investment; the Ministry of Industry and Information Technology has simultaneously introduced new standards for green manufacturing of silicone, forcing the industry to adopt solvent-free synthesis and RTO exhaust gas treatment processes. The VOC emissions and unit product energy consumption of this new production unit are both better than the national first-level standard, setting a benchmark for green mass production in the industry.
Industry Prospects: Compound modification and multi-functional customization have become the core research and development directions
The person in charge of R&D said that in the next step, the company will iteratively upgrade products in three major directions: first, phenyl-polysilazane composite modified silicone oil, suitable for OLED optical coatings and semiconductor moisture-proof packaging; second, low viscosity and high thermal conductivity special liquid-cooled phenyl silicone oil to meet the cooling needs of next-generation supercomputing and AI clusters; third, biodegradable, low-irritation medical-grade phenyl silicone oil to expand the overseas beauty export market.
Industry experts evaluate that this high-phenyl silicone oil continuous production line has stable mass production, complements the shortcomings of my country's high-end silicone products, and achieves independence in the entire chain from monomer synthesis, precision purification to terminal formulation. It can not only reduce the import dependence of the high-end manufacturing supply chain, but also promote the accelerated export of domestic phenyl silicone oil to overseas markets and seize the global market share of new energy and high-end electronic new materials.
http://www.iotachem.com
