Chinese Diamond Makers Pivot Toward AI Cooling

Chinese lab-grown diamond producers are shifting capacity from jewelry toward industrial materials, especially heat-spreading components for AI servers and chips, as oversupply pressures gem prices. Zhengzhou producer Feng Canjun plans to raise functional materials to more than half of his factory’s output by 2030, from about 30% today; industry figures cited in the articles put industrial-diamond margins at roughly 50%, versus 30% to 40% for gem-grade stones. The opportunity is driven by rising data-center power use and heat-management needs, and reports say Huawei and TSMC are exploring diamond cooling applications while Lenovo has used a diamond-copper material in a consumer laptop. Wider adoption remains uncertain: semiconductor uses face strict purity requirements, and China’s large share of global production could become a supply-chain vulnerability if the materials become critical to advanced computing.