The European Commission (EC) has approved €81 million in Spanish state aid for a groundbreaking synthetic diamond factory in Trujillo, Extremadura. The factory is backed by the American company Diamond Foundry. One of the investors is Hollywood actor Leonardo DiCaprio. The plant will produce synthetic diamond wafers for semiconductors.
These high-tech materials are critical for emerging industries such as 5G networks and electric vehicles. According to the EC, the initiative aligns with strategic EU objectives. These include job creation, regional development, and transitioning to a greener economy.
A high-tech boost for Extremadura
The Trujillo plant will use plasma reactor technology to produce raw synthetic diamonds, offering an alternative to traditional materials like silicon in semiconductor production. This project, with an estimated total investment of €675 million, aims to produce 4–5 million carats annually and is expected to create 300 direct jobs. Additionally, there will be indirect employment opportunities.
The factory will operate with a strong environmental focus, relying entirely on renewable energy sourced from a dedicated solar photovoltaic plant. Its carbon-neutral approach highlights the project’s role in fostering a sustainable industrial transition. The founders laid the first stone in March 2023. The plant covers an area of 84,000 square metres and will include a 120-megawatt photovoltaic plant to ensure self-sustainability.
EU’s strategic vision for semiconductor growth
The EC emphasised that the public funding serves as an “incentive effect,” ensuring the project moves forward. Without this financial support, the factory would not have been feasible. Furthermore, the subsidy complies with EU competition regulations because the EC limited it to the minimum necessary to stimulate investment in one of Spain’s less developed regions.
Teresa Ribera, the EC’s Executive Vice-President for a Fair and Competitive Transition, stated: “This decision supports Spain in hosting Diamond Foundry Europe’s first synthetic diamond plant on the continent. It will boost economic development and contribute to decarbonisation. Furthermore, it will enhance regional competitiveness while minimising any distortion to competition within the EU.”
Other sustainable investments of DiCaprio
Leonardo DiCaprio has invested over €50 million in Solarmente, adding to his growing portfolio of eco-conscious ventures. In 2020 Dutch entrepreneur Wouter Draijer founded the Barcelona-based solar energy company. The company offers an innovative subscription model for solar panel installation and maintenance. Solarmente designed this model to make solar energy more accessible to households across Spain.