China Launches $210M Diamond Semiconductor Project to Power Next-Generation Chips

China has initiated a $210 million project in Henan province to establish the nation’s first integrated industrial chain for fourth-generation diamond semiconductor materials. This strategic move aims to leverage Henan's existing synthetic diamond dominance to develop advanced ultra-wide-bandgap materials capable of superior heat dissipation and power handling. The project is critical for the semiconductor sector as it targets high-performance applications in AI, 5G/6G communications, and electric vehicles where traditional silicon reaches its physical limits.

The investment, totaling CNY 1.5 billion (approximately $210 million), involves the construction of a production base in the Zhengzhou High-tech Zone by Zhongke Powder Research (Henan) Superhard Materials Co., Ltd. Backed by Central South University, the project aims to cover the entire value chain, including chemical vapor deposition (CVD) equipment, single-crystal growth, epitaxy, micro- and nano-processing, and advanced packaging substrates. This initiative represents a significant push by China to strengthen its domestic supply chain for fourth-generation semiconductors, which utilize ultra-wide-bandgap materials like diamond and gallium oxide for extreme environment operations.

Technical specifications for the facility include the installation of 500 microwave plasma chemical vapor deposition (MPCVD) systems designed to produce single-crystal diamond wafers ranging from two to four inches. The plant will also utilize proprietary LPPHT micro- and nanodiamond technology across 50 dedicated production lines to manufacture spherical diamond powders used in advanced materials applications. According to company chairman Chen Zemin, the project is designed to transition micro- and nanodiamond technology from laboratory research to large-scale industrialization, addressing the growing demand for advanced electronic thermal management and high-power electronics.

The project roadmap anticipates that the first 200 MPCVD systems will be operational by the end of 2026, with the facility projected to reach an annual output value of CNY 3 billion ($420 million) within three years of full operation. By integrating with the Central South University – CAS Powder Research R&D Center, the initiative seeks to create a complete innovation pipeline from basic research to mass production. For the global semiconductor market, this signifies a major shift as Henan evolves from a center for industrial-grade synthetic diamonds into a high-value supplier of materials essential for next-generation AI chips, 5G/6G infrastructure, and electric vehicle power systems.