Is this stuff thermal paste or what is it?

Ceramique is special thermal compound that contains no metal so as to be especially non-conductive to electricity, however due to that it is not as quite as good of a thermal conductor as Artic Silver's other products. You would only want to use this stuff if you putting a heat sink somewhere where the thermal compound might leak onto a circuit. For standard CPUs you would not need to use this.
 
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