According to informed sources, a plan to build a synthetic diamond plant in the United States is a highly attractive project within Japan's massive $550 billion total investment initiative. This plan is reportedly a joint effort by the US and Japan to expand the production of a material crucial for semiconductors and high-precision manufacturing.
Diamond is one of the hardest known materials and is essential for high-precision manufacturing. It is used for ultra-fine polishing of semiconductors, processing hard metals and ceramics in quantum devices, and for heat dissipation in advanced electronic systems.
According to two sources, this could be one of the first projects to be announced, with the details being disclosed for the first time. These projects are planned to be announced before Japanese Prime Minister Sanae Takaichi's visit to the US in March.
One of the sources stated, "The United States wants to accelerate domestic synthetic diamond production. By introducing Japanese companies, Washington aims to establish a US-Japan supply chain."
The sources added that the synthetic diamond project is being handled by Element Six, which is part of the De Beers Group, a global leader in the diamond industry.
This news comes as Japan accelerates its efforts to finalize related projects under this initiative. The initiative is part of an agreement reached between Tokyo and Washington aimed at reducing tariffs on Japanese exported goods.
The investment plan will include equity, loans, and loan guarantees from the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).
Sources said the first batch of projects may also include a major power generation project involving Japanese industrial giant Hitachi Ltd. The transaction value of these projects is not yet known.
A report this month indicated that a major infrastructure project involving the construction of a data center linked to SoftBank Group also remains on the candidate list.
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