The European Union has approved a €81 million ($84 million) grant to support Diamond Foundry in establishing a cutting-edge diamond production facility in Trujillo, Extremadura, Spain.
The plant will focus on producing synthetic diamond wafers for industrial applications using the company’s advanced plasma reactor technology, the European Commission (EC) announced earlier this week.
Synthetic diamonds offer a sustainable and efficient alternative to silicon in the semiconductor industry, addressing growing demand from sectors such as 5G networks, electric vehicles, and other advanced technologies.
The EC highlighted the project’s potential to bolster innovation while advancing the EU’s green economy goals.
Spain had sought the EU’s approval for state aid under its rules, and the EC determined that the initiative would yield widespread benefits.
Teresa Ribera, the EC’s Executive Vice President for Clean, Just, and Competitive Transition, noted, “Launching Diamond Foundry’s first factory in Europe will foster the transition to a decarbonized economy and competitiveness.
The measure will also contribute to the economic development of the region, while limiting possible distortions of competition.”
Designed to be carbon-neutral, the facility will operate on renewable energy supplied by a solar photovoltaic plant.
It will have an annual production capacity of 4 to 5 million carats and is expected to create approximately 300 direct jobs, with additional indirect employment opportunities.
