EU's $85m for Diamond Foundry's Spanish Factory
December 19, 24
(IDEX Online) - The US-based Diamond Foundry is to receive $85m of European Union cash to fund the building of its new lab grown factory in western Spain.
The EU said the grant, agreed earlier but only now formally announced, would have an incentive effect since "the beneficiary would not carry out the project without the public aid".
The huge, solar-powered facility in Trujillo, Extremadura, will produce at least 4m carats a year, according to the EU announcement (on 16 December) and will create 300 jobs.
The majority of the diamonds it produces will be for semiconductors, for the automotive sector or 5G communication networks, but some will be gem quality for the jewelry sector.
The EU investment, representing around an eighth of the total cost, aligns with the EU's broader strategy of enhancing its technological competitiveness in the semiconductor market.
"Today's decision allows Spain to support Diamond Foundry Europe in setting up its first factory in Europe, which will produce semiconductor grade synthetic diamonds," said EU spokeswoman Teresa Ribera.
"This will foster the transition to a decarbonised economy and competitiveness. The aid will also contribute to the economic development of the region, while limiting potential distortions of competition."
File pic, courtesy Diamond Foundry, shows plasma reactors for making lab grown diamonds.