The invention discloses a composite material used for an integrated circuit lead frame and a manufacturing method of the composite material, and belongs to the technical field of composite materials. The composite material comprises three component layers of a sandwich structure, the first component layer and the third component layer are iron-nickel alloys which are namely FeNi42, and the second component layer is a copper alloy. The composite material comprises, by volume, 12-18% of the first component layer, 64-76% of the second component layer and 12-18% of the third component layer and has the advantages that an expansion coefficient matched with that of a silicon chip is obtained, tensile strength matched with that of the silicon chip is achieved, the cost is lowered by above 15% compared with that of a composite material using FeNi42 alloys, the high strength is achieved, and a high extend rate is achieved.