The European Union has given the green light for a grant of EUR 81 million ($84 million) to support Diamond Foundry’s establishment of a facility in Spain that will produce rough for industrial applications.
The site in Trujillo, Extremadura, will grow diamond wafers using the company’s plasma reactor technology, the European Commission — the EU’s executive body — said in a statement earlier this week.
The semiconductor industry can use synthetic diamonds as an alternative to silicon and other resources that are currently in use, the statement noted. The project aims to serve demand from 5G networks, electric vehicles, and other key sectors, it added.
Spain had informed the EU of its plans to support Diamond Foundry. Under EU rules, the EC must approve members states’ proposals for state aid. It concluded that the measures would have a positive impact in many areas.
Launching Diamond Foundry’s first factory in Europe “will foster the transition to a decarbonized economy and competitiveness,” said Teresa Ribera, the EC’s executive vice president for clean, just and competitive transition. “The measure will also contribute to the economic development of the region, while limiting possible distortions of competition.”
Designed to be carbon-neutral, the new facility will use renewable energy generated by a solar photovoltaic plant. It is expected to have an annual capacity of 4 million to 5 million carats and to create around 300 direct jobs and additional indirect jobs, the EC said.
Image: The inside of a plasma reactor at a Diamond Foundry facility. (Diamond Foundry)
