Since 2026, diamond semiconductor-related projects have been signed, commenced, or put into production in Inner Mongolia, Gansu, Xinjiang, Henan, and other regions. Provinces and regions such as Jiangsu, Zhejiang, Shandong, Anhui, Shanxi, Hubei, Hunan, and Guangdong have also seen intensive actions. Product directions have extended from industrial diamonds and lab-grown diamonds to diamond single crystals, heat spreaders, and diamond-copper composites. Regional layouts are related to low electricity prices, green power consumption, the ultra-hard materials industry foundation, and downstream thermal management demands. More accurately, this is not a simple "capacity race," but a phased expansion of diamond applications extending beyond traditional ultra-hard materials into semiconductor thermal management, packaging, and power devices.
I. Inner Mongolia: The "Neighbors" in the 5.7 Billion Home Court
Inner Mongolia is one of the provinces with the most intensive diamond semiconductor projects this year.
On October 12, the annual production of 6 million carats of diamond and semiconductor application products project by Ordos Guoxin Energy Co., Ltd. was signed and settled in the Ordos High-tech Zone. The total investment of the project is CNY 5.7 billion, planning to build a full chain from synthesis, cutting, grinding and polishing to semiconductor applications. Products include diamond single crystals, spinels, heat spreaders, diamond-copper composites, and colored diamonds.
In May, Huifeng Diamond's CVD diamond heat dissipation project commenced in Baotou. The total investment of the project is CNY 1 billion, planning to deploy 1,000 MPCVD units (500 in the first phase), focusing on the preparation of CVD diamond heat spreaders, semiconductor functional materials, and the production of lab-grown diamonds.
On March29, the semiconductor diamond MPCVD project with a total investment of CNY 1 billion by Zhongke Lvyun (Guangdong) Energy Management Co., Ltd. was signed and settled in the Shanghai Miao Economic Development Zone in Ordos, focusing on breaking through the localization of MPCVD processes and the growth of large-size single crystals.
On March 27, the fourth-generation semiconductor material diamond project by Zhongzhou (Alxa) Semiconductor Technology Co., Ltd. commenced in the Zero-Carbon Park of the Alxa High-tech Zone. The total investment of the project is CNY 1.7 billion, constructed in two phases, deploying MPCVD equipment to produce semiconductor-grade single-crystal/polycrystalline diamond heat spreaders and metal composite heat spreaders. It is expected to enter initial production by the end of 2027 and reach full production capacity by the end of 2028.
II. Xinjiang: The "Magnetic Pole" Drawn by Low Electricity Prices
If Inner Mongolia relies on energy and industrial parks, Xinjiang relies on the most direct competitiveness—electricity prices.
From September 19 to 22, the Huaxia Kunpeng Xincai project in Hami, Xinjiang, completed its EIA approval. The total investment of the project is CNY 428 million, planning four production lines: an annual production of 200,000 pieces of semiconductor heat sink devices, 200,000 pieces of military-grade heat sink devices, 5,000 pieces of 6-inch diamond wafers, and 600,000 carats of rough diamonds.
On August 30, the annual production of 450 million carats of synthetic diamond project by Xinjiang Huanghe Xuanfeng Technology Co., Ltd. commenced in Emin County, Xinjiang. The project covers an area of 107.88 mu, with a first-phase investment of CNY 300 million and the deployment of 60 six-sided top presses. The products are clearly expanding into emerging tracks such as semiconductor heat dissipation and AI computing power heat dissipation.
On August 18, the MPCVD diamond semiconductor material project with a total investment of CNY 1.2 billion was signed and settled in the Second Division Tiemenguan Economic and Industrial Park. The implementing entity is Chengde Tianqian Dikun Technology Co., Ltd., with a first-phase investment of CNY 510 million.
On April 21, Sf Diamond's holding subsidiary Henan Tianxuan signed an investment contract with the People's Government of Shayar County, Xinjiang, planning to invest about CNY 450 million to build an annual production of 25,000 pieces of CVD diamond project. On May 18, the project company completed its industrial and commercial registration. The products are 4-inch CVD diamond heat spreaders, and production is expected to commence in the first quarter of 2027.
About 60% of the cost of heat spreaders comes from electricity—this cost logic connects Hami, Shayar, and Emin into a line: they happen to be on the low electricity price energy belt.
III. Gansu: The Emerging "New Pole"
Gansu started late, but its moves are significant.
In May, the Jiuquan Economic and Technological Development Zone introduced the MPCVD diamond material project by Zuowen Technology, with a total investment of CNY 2.5 billion. The first-phase investment is CNY 500 million, planning to configure 80 microwave crystal growth furnaces and 40 laser cutting machines.
At the same time, Heshui County in Qingyang planned an MPCVD diamond high-tech industrial park. The core resident entity is also Zuowen Technology, with a total first-phase investment of CNY 1.3 billion. Upon completion, it will have an annual production of 300,000 carats of diamond rough stones and an output value of over CNY 600 million.
Gansu is rapidly becoming a new pole in the MPCVD diamond industry.
IV. Henan: The Turn of the Old Nest
As the old nest of China's diamond industry, Henan's production capacity accounts for more than 80% of the national total. The actions in the past half year have a clearer direction: shifting from abrasives and lab-grown diamonds to semiconductors.
In September, the third phase of Huifeng Diamond's Digital and Intelligent Technology Park commenced in Zhecheng, with an investment of CNY 1 billion, producing 2 billion carats of high thermal conductivity micropowder and 1.5 million pieces of composite materials annually, aiming to build a full chain of "single crystal—powder—composite material—thermal management." On June 1, its Huifeng Digital and Intelligent Industrial Park (Phase II) high thermal conductivity diamond powder project was put into production, forming an annual scale of 20 tons of high thermal conductivity diamond composite materials and powder.
On June 26, the fourth-generation semiconductor material manufacturing base by Zhongke Fenyan was signed and settled in the Zhengzhou High-tech Zone, with a total investment of CNY 1.5 billion. It is known as "the first domestic full industry chain project for fourth-generation semiconductor materials." The project plans to deploy 500 MPCVD units to produce 2-4 inch single-crystal wafers and 50 LPPHT production lines. 200 MPCVD units will be put into production first by the end of this year, with a target annual output value of CNY 3 billion within three years.
On February 28, the first domestic 8-inch diamond heat spreader production line invested by Henan Fengyou Chuang Material Technology Co., Ltd., a subsidiary of Huanghe Xuanfeng, was put into production in Changge City. The total investment of the project is CNY 1.2 billion, with CNY 360 million in the first phase, configuring 50 MPCVD units, with an annual production of 20,000 pieces of large-size heat spreaders. The products cover 2 to 8 inches and a thickness of 0.1 to 1 mm, with a stable yield rate of over 85%. The company plans to invest CNY 2 billion over the next three years and gradually configure 300 MPCVD units to form an annual production capacity of 150,000 pieces, aiming to make semiconductor heat dissipation its primary business.
Capital is also making a turn. In June, Liliang Diamond announced a change in the use of raised funds, with the CNY 1.028 billion raised funds originally used for lab-grown diamond expansion all shifted to diamond functional material projects; Huanghe Xuanfeng plans to configure 300 MPCVD units within three years, aiming to make the semiconductor heat dissipation business its primary business.
V. East and Central China: Newcomers and Veterans Enter the Arena Simultaneously
Looking at the projects in other provinces, the increase in density is more obvious.
Jiangsu: In September, the annual production of 150,000 carats of large-size high-purity MPCVD single-crystal diamond project by Weina Hongxin entered the EIA public notice, with an investment of CNY 150 million, targeting the mainstream specifications of chip-level heat dissipation substrates; in May, the Qidong Economic Development Zone signed a fourth-generation semiconductor diamond substrate manufacturing project with a total investment of CNY 100 million.
Zhejiang: In September, the annual production of 1,200 pieces of diamond-based epitaxial wafers (less than 4 inches) project by Kunpeng Xinxing completed the completion acceptance and fire filing, with an investment of CNY 100 million; Ningbo Jingzuan Technology advanced on three fronts within the year, planning a total annual production capacity of 220,000 pieces of chip heat dissipation diamond with an investment of about CNY 271 million; at the end of August,沃尔德 (Wolde) released a private placement plan, with the diamond functional parts industrialization project totaling CNY 524 million. The construction site is in Xiuzhou District, Jiaxing, Zhejiang. Upon completion, it will form the capacity to produce 650,000 pieces of diamond heat dissipation substrates annually.
Anhui: On September 29, the second EIA public notice for the Shangxin Jinggong SPS advanced material R&D and production base was released, with a total investment of CNY 500 million. The products include 241,500 pieces of diamond/copper composite materials and 250 pieces of single crystals.
Shandong: On September 8, the annual production of 500 million carats of diamond full industry chain upgrade project by Shandong Junrui Diamond was founded in Yanggu County. The first-phase investment is CNY 200 million, adding 100 six-sided top presses. The products mainly target semiconductor and AI chip heat dissipation.
Hubei: On September 30, Hubei Xinyi Crystal Technology, established for just over two months, filed an annual production of 500,000 pieces of diamond heat spreader project, with a total investment of CNY 100 million.
Diamond heat dissipation projects are spreading along the low electricity price energy belt. Hami, Shayar, Emin, Alxa, Baotou, Jiuquan, and Qingyang form an arc. About 60% of the cost of heat spreaders is energy consumption, and western green power has become an invisible magnetic pole.
The power consumption of AI chips has risen to the kilowatt level. The thermal conductivity of diamond is about 5 times that of copper and 10 times that of aluminum. Zhongtai Securities estimates that the global diamond heat dissipation market for AI chips will be about CNY 8.7 billion in 2026, and is expected to reach CNY 59.2 billion by 2030. 2026 is regarded as the first year of commercial introduction. Meanwhile, the price of lab-grown diamonds has fallen by about 80% from its peak, and traditional abrasives have meager profits. Heat dissipation has become a ready-made second growth curve for ultra-hard material enterprises.
However, signing does not equal production. A large number of projects are still in the EIA, filing, signing, or preparation stages. The verification cycle for semiconductor customers is as long as one to two years, and most enterprises have only sent samples or conducted small-batch trial production. Large-size single crystals are also constrained by dislocation density, growth rate, and crystal quality. The superposition of material revolution, industrial transformation, and the low electricity price energy belt—diamond is just about to move from the wedding ring counter to the door of the data center.