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Diamonds in the chip manufacturing race
The semiconductor industry is exploring the potential of lab-grown diamonds as fundamental materials in manufacturing next-generation electronic chips, offering a more efficient alternative for heat and radiation resistance. The research focuses on developing chips made entirely of diamond, although current costs are very high—up to 40 times that of silicon chips—and companies aim to increase production and reduce expenses by 2028-2030. The growing demand for diamonds in cooling applications and thermal conductivity components is especially notable amid rising heat generated by AI processors, which bolsters expectations that the lab-grown diamond market in electronics could expand to hundreds of billions of dollars by 2030. Stock markets are reacting to these developments, with companies linked to the diamond industry experiencing sharp fluctuations since late 2025, with forecasts suggesting the technology will shift from research to widespread commercial applications.
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