A new set of heat spreader coatings consisting of multilayers of diamond/AlN/diamond were deposited on high heat capacity substrates of molybdenum and silicon nitride. Bonding of the heat spreaders to the device wafers using gold-tin eutectic solder was carried out after metallization layers of titanium, gold and copper were deposited on diamond. Prior to bonding, backside of the silicon wafers was also metallized with titanium, gold and copper and the gallium arsenide wafers with titanium, copper-germanium alloy and gold. Characterization of the multilayer diamond films was carried out by Raman spectroscopy, X-ray diffraction and scanning electron microscopy. The bonded wafers were tested for adhesion strength, resistance against peeling due to thermal cycling and failure under stress. Further, the bonded regions were characterized by scanning electron microscopy, energy dispersive spectroscopy and X-ray mapping of different elements. The heat spreader characteristics of the single layer diamond and the multilayer diamond substrates were tested by infrared imaging. The results illustrate that the multilayer diamond heat spreader coatings provide better heat dissipation and also possess better adhesion strength and resistance against peeling under thermal cycling. These novel multilayer diamond/AlN/diamond heat spreaders are expected to considerably improve the life of high frequency power devices.