There is provided a composite material for a heat dissipating plate which achieves both a high thermal conductivity and a low coefficient of thermal expansion and has a performance satisfactory as a heat dissipating plate and a method of production of a composite material which can produce the composite material at a low cost. For this reason, powder metallurgy is used to produce the composite material for a heat dissipating plate. The composite material for a heat dissipating plate which is fabricated by this method of production contains an aluminum alloy and silicon carbide. The particles of silicon carbide are in contact with each other.