(September 7, 2026) The domestic phenylsilicone industry continues to experience both technological and market changes. With the adoption of advanced synthesis processes and the increase in domestic production capacity, the use of phenylsilicones in applications such as AI liquid cooling, optoelectronic packaging, new energy technologies, and specialty lubricants is expanding. The industry is moving toward higher purity, greener processes, and customized solutions.

Phenylsilicones are valued for their excellent temperature resistance, high refractive index, and insulating stability due to the phenyl group they contain. Unlike ordinary methylsilicones, they are widely used in specialty lubricants, insulating materials, and high-end cosmetic ingredients. Since 2026, the growth of emerging industries has further increased demand for high-quality products. The rapid expansion of the AI computing industry, along with the widespread use of immersion liquid cooling systems, has made phenylsilicones with high flash points, low dielectric constants, and chemical inertness essential for server immersion cooling. These products offer cost advantages over traditional fluorinated liquids and help avoid PFAS-related compliance issues, making them suitable for the construction of many commercial artificial intelligence centers. In the optoelectronic and semiconductor fields, high-refractive-index phenylsilicones are used in LED and Mini-LED optical packaging. Their high light transmittance and resistance to yellowing improve the efficiency and lifespan of these devices. With the advancement of 800V high-voltage platforms in new energy vehicles, electronic-grade phenylsilicones are also being used in insulating encapsulation and thermal conductive gel systems.

In terms of technology, new methods such as continuous flow microreactions and AI-assisted synthesis are being implemented to control molecular weight distribution more accurately, reducing volatile components and small molecule ring structures. Electronic-grade products meet international JEDEC standards. Tens of thousand-ton production lines for ultra-pure phenylsilicones operate smoothly, and domestic high-quality products are breaking long-term foreign monopolies. The proportion of domestically produced high-end products is increasing, and supply chain costs are improving. At the same time, green manufacturing has become a mandatory requirement for the industry. Relevant policies impose restrictions on production energy consumption and VOC emissions. Bio-based phenylsilicones have obtained international certifications, and products with low VOC and low ring structure content are becoming more common, meeting the requirements of EU REACH and LFGB for export compliance.

Market research data shows that the phenylsilicone market is growing steadily, with Asia-Pacific being the main region for production and consumption. Besides industrial electronics applications, demand for high-purity phenylsilicones in the cosmetics industry is also rising. Low-ring-structure products are increasingly used in high-end cosmetics and skincare formulations. Industry analysts believe that future growth will focus on three areas: computing liquid cooling media, aerospace specialty lubricants, and optical packaging materials. Customized and environmentally friendly products will be key to competition among companies. However, there are still challenges in developing high-end products. Downstream customers require better batch stability, complete COA reports, and compliance certifications from various countries. Domestic companies need to strengthen their R&D capabilities and expand their B2B market presence overseas.

Looking ahead to the second half of the year, with continued investment in new energy and computing infrastructure, demand for phenylsilicones is expected to increase. Domestic companies will continue to improve their production processes to narrow the gap with international leaders in certain specialty products, thereby enhancing the global competitiveness of domestic silicone materials.