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China's lab-grown diamond makers target AI, chip sectors for next wave of growth
Producers are betting on higher margins in chips and AI servers as jewellery demand weakens, with industrial uses already paying about 50% gross margins, Feng said.
- Feng Canjun's Jiaruifu factory in Henan is shifting production focus from jewelry to industrial diamonds for semiconductors and AI servers, reflecting a broader strategic pivot by Chinese lab-grown diamond producers.
- Industrial diamonds yield about 50% profit margins compared to 30% to 40% for jewelry, prompting Feng to target higher-value applications and plan raising functional material production to more than 50% by 2030.
- Researchers at the Ningbo Institute and Materials Technology developed diamond-copper cooling modules that improved heat transfer by 80% and raised chip performance by 10%, demonstrating clear industrial benefits.
- Independent consultant Robert Bouquet noted that technology sector potential exceeds the $100 billion retail jewelry business, while analysts warn China's production dominance could create supply-chain vulnerabilities for the US.
- The Spanish government is investing €753 million in a Diamond Foundry plant in Trujillo to establish Europe as a large-scale producer, while Element Six and Orbray develop chip-grade diamond wafers.
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Total News Sources4
Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
C 75%
R 25%
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