In a major stride towards enhancing Europe’s semiconductor production capabilities, the European Commission has approved an €81m Spanish initiative to establish a state-of-the-art factory for producing semiconductor-grade synthetic diamonds.
Located in Trujillo, Extremadura, this project, spearheaded by Diamond Foundry Europe, is set to revolutionise the region’s economy while contributing to the EU’s green and digital transformation goals.
Teresa Ribera, the EU’s Executive Vice-President for Clean, Just and Competitive Transition, commented: “Today’s decision enables Spain to support Diamond Foundry Europe in setting up its first factory in Europe to produce semiconductor-grade rough synthetic diamonds.
“This will foster the transition to a decarbonised economy and competitiveness. The measure will also contribute to the economic development of the region while limiting possible distortions of competition.”
A game-changer for semiconductor production
The new factory, backed by Spain’s direct grant of €81m, represents a significant investment in Europe’s technological future.
The total project cost is estimated at €675m, making it a key player in the EU’s ambition to secure its place in the global semiconductor race.
The facility will utilise Diamond Foundry Europe’s cutting-edge plasma reactor technology to produce synthetic diamond wafers, positioning these materials as a viable alternative to traditional silicon in semiconductors.
Synthetic diamonds are gaining traction due to their superior thermal conductivity, robustness, and efficiency in demanding applications.
They hold immense potential in critical sectors such as 5G networks and electric vehicles (EVs), promising to meet the growing demands of an increasingly connected and electrified world.
Advancing Europe’s semiconductor strategy
The establishment of this facility aligns with the European Union’s broader strategy to strengthen its semiconductor supply chain.
As global competition for semiconductors intensifies, the EU seeks to reduce dependence on imports from regions like Asia and the United States.
This project not only bolsters Europe’s technological sovereignty but also sets a precedent for the adoption of alternative materials in semiconductor manufacturing.
The shift from silicon to synthetic diamonds represents a leap forward in addressing the limitations of silicon-based semiconductors, such as overheating and inefficiencies at higher frequencies.
By investing in innovation, Europe is laying the groundwork for the next generation of faster, more efficient, and sustainable semiconductors.
Why alternatives to silicon are crucial
For decades, silicon has been the backbone of semiconductor technology. However, the growing complexity of modern electronics and rising demand for higher performance have exposed its limitations.
Synthetic diamonds offer unique advantages, including better thermal management and electrical properties, which are critical for advanced applications like quantum computing, EVs, and next-generation wireless technologies.
Additionally, global silicon shortages underscore the need for alternative materials. Diversifying the semiconductor supply chain with synthetic diamonds can help mitigate risks and ensure the resilience of Europe’s technology sector.
Green transition and regional development
The factory in Trujillo will also contribute to the EU’s ambitious environmental goals. Designed to be carbon-neutral, the plant will run entirely on renewable energy sourced from a solar photovoltaic installation.
With an annual production capacity of 4 to 5 million carats of synthetic diamonds, the facility not only champions sustainability but also reinforces the green economy of the Extremadura region.
This project is expected to create approximately 300 direct jobs and numerous indirect opportunities in a region that qualifies for regional aid under Article 107(3)(a) of the Treaty on the Functioning of the EU.
The economic ripple effects will enhance regional development, reduce disparities, and foster innovation in one of Europe’s less-developed areas.
Strengthening Europe’s technological edge
By supporting projects like Diamond Foundry Europe’s synthetic diamond factory, the EU is making a bold statement about its commitment to advancing semiconductor innovation and securing economic stability.
This initiative is not only about producing cutting-edge materials but also about empowering regions like Extremadura to become hubs of high-tech excellence.
As the world pivots toward greener and more efficient technologies, synthetic diamonds are poised to play a transformative role in the semiconductor industry.
Europe’s investment in this project highlights the importance of staying ahead in the global race for innovation while fostering sustainable development and technological independence.
