This Small Business Innovation Research (SBIR) Phase I project will develop via displacement reactions a novel composite for use in high-speed cutting tools. The ability to increase machining speeds as well as metal removal rates will lead to increased productivity at reduced manufacturing cost. A new composite cutting tool insert, made of SiC whisker-reinforced alumina (Al203-SiCw), has resulted in a breakthrough for machining nickel alloys to speeds of 15 m/s and feed rates up to 0.5 mm/rev. Dramatically improved ceramic composite cutting tool inserts are possible through optimization of the ceramic matrix for thermal conductivity, hardness, coefficient of friction, toughness, and strength, coupled with a new whisker that enhances these properties though chemically inert. The new optimized ceramic composite will also expand the range of metal alloys, including cast iron, that can be machined at increased speeds and feed rates, which will also result in increased manufacturing productivity at reduced cost. A new class of in situ composites with high strength and fracture toughness and low production costs open up many new markets where advanced ceramics are not as yet cost effective. Potential commercial applications include cutting tool inserts for machining nickel, iron, and other alloys; heat exchangers; pump seals; abrasive jet nozzles; wear plates; and engine components e.g., cam followers, brakes, etc.