Regional aid: Commission approves EUR 81 million state aid to support Diamond Foundry Europe’s production of semiconductor-grade synthetic diamonds in Spain
Today, the Commission has approved a EUR 81 million state aid measure to assist Diamond Foundry Europe in establishing a new factory for producing semiconductor-grade rough synthetic diamonds in Trujillo, Extremadura. This is an area eligible for regional aid under Article 107(3)(a) TFEU.
Synthetic diamonds can serve as an alternative to silicon in the semiconductor industry, meeting the needs of key sectors like 5G networks and electric vehicles. The factory will be carbon-neutral, powered entirely by renewable energy from a solar photovoltaic plant.
The Commission assessed the measure against Article 107(3)(a) TFEU and the 2022 Regional Aid Guidelines, which support economic development in disadvantaged areas. It approved it, as it will boost regional development and competitiveness in Trujillo, by creating around 300 direct jobs and additional indirect employment. Moreover, it was deemed necessary, appropriate and proportionate to establish the Diamond Foundry Europe factory, with minimal impact on competition and trade within the EU.
For more information, see the PR.