China's lab-grown diamond makers target AI, chip sectors for next wave of growth

What happened

Around 70% of the 2 million carats of lab-grown diamonds made each year at Feng Canjun's factory go into jewellery. China's producers, about half of world supply, are now targeting chips, AI servers and other high-tech materials as competition and price pressure grow.

Confirmed

Global impact / market context

Selling diamonds as industrial material for chips and AI cooling could lift factory revenue beyond jewellery and make China's large output a supply-chain concern for the US in its technology rivalry.

Analyst inference

Prices for jewellery diamonds are under pressure from rising competition, pushing producers toward higher-value industrial buyers. Companies tied to chipmaking and AI hardware, including listed diamond and chemical firms, could see new demand for synthetic diamond materials.

Analyst inference

What to watch

1. Feng Canjun plans to raise the share of products used in functional materials to more than 50% by 2030, while cutting the jewellery share to a maximum of 30%. Confirmed
2. Watch whether chip, thermal management and quantum technology demand grows enough to absorb output as jewellery use falls, since that shift decides whether the industry's bet pays off. Analyst inference
3. Watch for tighter export or trade rules from both China and the US if synthetic diamonds become widely used in semiconductors and AI cooling infrastructure. Analyst inference

Evidence

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