If China strikes again, it will be more deadly than rare earths. Vance advised China to calm down. my country's Ministry of Commerce has decided that starting from the 8th of next month, domestic artificial diamonds have a particle size of ≤50μm and must be approved before they can be exported.
A powder that looks as fine as white sugar is making the United States extremely anxious. On October 12th, US Vice President Vance rarely lowered his posture, publicly expressed his hope to "rationally negotiate" with China, and advised China to "keep calm".
A few months ago, at a security conference, his attitude was completely different, and the reason for his shift was not political pressure, but the key material in Chinese hands – artificial diamond micropowder.
This powder is not ordinary industrial products, but the core material of high-end manufacturing, its hardness is almost consistent with natural diamonds, and is the key support for chips, precision optics, aviation materials and other industries.
In the process of chip manufacturing, the silicon sheet must be brushed to a very thin thickness to enter the subsequent process, and each chip needs to be repeatedly polished.
This 20 to 30 micron artificial diamond powder is used in polishing tools. According to industry data, about 50 kilograms of high-purity diamond powder are consumed for every 10,000 12-inch wafers processed.
If the powder purity or particle accuracy is slightly problematic, the consequences are extremely serious. TSMC's Arizona factory has suffered huge losses because of the unstable performance of diamond powder used in cutting knives, resulting in 300 3-nanometer wafers being directly scrapped, with losses exceeding US $20 million.
The use of diamond micro-powder is not limited to grinding, the critical reflectors and high-power laser systems inside the ASML optical engraving machine are inseparable from it, the reflectors need to be grinding to a very high flat integrity, any minor error will affect the accuracy of the light.
The operating temperature of the laser system is extremely high, only the diamond material can meet the requirements of high conductivity heat and high transmittance light at the same time, otherwise the equipment will stop due to overheating.
China's leading position in this field is the result of decades of accumulation. In the 1990s, the global industrial diamond market was monopolized by the United States and South Africa.
China's scientific research team has begun to independently research on the "six-sided pressing machine" technology, which can synthesize diamonds under extreme pressure.
After long-term research and development, China's sixth-generation compressors have comprehensively surpassed overseas in control accuracy and production efficiency, and the output of one machine is 2.3 times the same type of equipment in South Africa.
The United States is also trying to catch up. In 2022, the U.S. Department of Energy invested US$120 million in an attempt to bypass China technology through a "pressure-free synthesis" route.
But two years later, they only got a small amount of 8 micron crystals, which is not far from industrialization, compared with the fact that Chinese factories have long been able to produce 50 micron diamond powder with a purity of up to 99,999% at a lower cost and stable volume.
In addition to technology, China has also established a complete industrial system, with Henan as the core. From graphite purification, press manufacturing to micro-powder grinding, China has formed a full-chain industrial cluster.
According to data from the U.S. Geological Survey, China produces 95% of the global total industrial diamonds, and micro-powder products account for more than 90%. It is the only country that can supply chip-level high-purity products in batches. It will take at least ten years for any country to catch up with such an advantage.
This raised the alarm from the Semiconductor Industry Association (SIA), which pointed out in a report to Congress that the risk of fine diamond powder to the chip industry is "more serious than rare earths."
If supply is disrupted, at least five chip plants in the U.S. will shut down production within three months, while rebuilding the supply chain is expected to take five years and costs will triple.
China did not choose a comprehensive embargo, but instead adopted a more accurate management method, the newly introduced export control system will shorten the approval process from 20 days to 5 days, but at the same time adds a strict audit link, the importer must submit a final user statement, and by its government issued a "no-transfer warranty letter".
The effect of this strategy was instantaneous, with one U.S. medical equipment company applying for materials for non-military use being approved in just 72 hours; another company attempting to convert to military use was directly rejected.
Although large equipment manufacturers such as ASML and Zeiss are licensed, the quota is only 62% of last year's, and the clause of "only repair but not build" is attached-materials can only be used to repair sold equipment, and no new lithography machines are allowed. This restriction directly affects ASML's production expansion plan.
From the passive response of China to the U.S. technological blockade in the past, to the initiative of key raw materials, China is redefining the rules of global high-end manufacturing through a “compliant, controllable” supply system.
A powder that looks as fine as white sugar is making the United States extremely anxious. On October 12th, US Vice President Vance rarely lowered his posture, publicly expressed his hope to "rationally negotiate" with China, and advised China to "keep calm".
A few months ago, at a security conference, his attitude was completely different, and the reason for his shift was not political pressure, but the key material in Chinese hands – artificial diamond micropowder.
This powder is not ordinary industrial products, but the core material of high-end manufacturing, its hardness is almost consistent with natural diamonds, and is the key support for chips, precision optics, aviation materials and other industries.
In the process of chip manufacturing, the silicon sheet must be brushed to a very thin thickness to enter the subsequent process, and each chip needs to be repeatedly polished.
This 20 to 30 micron artificial diamond powder is used in polishing tools. According to industry data, about 50 kilograms of high-purity diamond powder are consumed for every 10,000 12-inch wafers processed.
If the powder purity or particle accuracy is slightly problematic, the consequences are extremely serious. TSMC's Arizona factory has suffered huge losses because of the unstable performance of diamond powder used in cutting knives, resulting in 300 3-nanometer wafers being directly scrapped, with losses exceeding US $20 million.
The use of diamond micro-powder is not limited to grinding, the critical reflectors and high-power laser systems inside the ASML optical engraving machine are inseparable from it, the reflectors need to be grinding to a very high flat integrity, any minor error will affect the accuracy of the light.
The operating temperature of the laser system is extremely high, only the diamond material can meet the requirements of high conductivity heat and high transmittance light at the same time, otherwise the equipment will stop due to overheating.
China's leading position in this field is the result of decades of accumulation. In the 1990s, the global industrial diamond market was monopolized by the United States and South Africa.
China's scientific research team has begun to independently research on the "six-sided pressing machine" technology, which can synthesize diamonds under extreme pressure.
After long-term research and development, China's sixth-generation compressors have comprehensively surpassed overseas in control accuracy and production efficiency, and the output of one machine is 2.3 times the same type of equipment in South Africa.
The United States is also trying to catch up. In 2022, the U.S. Department of Energy invested US$120 million in an attempt to bypass China technology through a "pressure-free synthesis" route.
But two years later, they only got a small amount of 8 micron crystals, which is not far from industrialization, compared with the fact that Chinese factories have long been able to produce 50 micron diamond powder with a purity of up to 99,999% at a lower cost and stable volume.
In addition to technology, China has also established a complete industrial system, with Henan as the core. From graphite purification, press manufacturing to micro-powder grinding, China has formed a full-chain industrial cluster.
According to data from the U.S. Geological Survey, China produces 95% of the global total industrial diamonds, and micro-powder products account for more than 90%. It is the only country that can supply chip-level high-purity products in batches. It will take at least ten years for any country to catch up with such an advantage.
This raised the alarm from the Semiconductor Industry Association (SIA), which pointed out in a report to Congress that the risk of fine diamond powder to the chip industry is "more serious than rare earths."
If supply is disrupted, at least five chip plants in the U.S. will shut down production within three months, while rebuilding the supply chain is expected to take five years and costs will triple.
China did not choose a comprehensive embargo, but instead adopted a more accurate management method, the newly introduced export control system will shorten the approval process from 20 days to 5 days, but at the same time adds a strict audit link, the importer must submit a final user statement, and by its government issued a "no-transfer warranty letter".
The effect of this strategy was instantaneous, with one U.S. medical equipment company applying for materials for non-military use being approved in just 72 hours; another company attempting to convert to military use was directly rejected.
Although large equipment manufacturers such as ASML and Zeiss are licensed, the quota is only 62% of last year's, and the clause of "only repair but not build" is attached-materials can only be used to repair sold equipment, and no new lithography machines are allowed. This restriction directly affects ASML's production expansion plan.
From the passive response of China to the U.S. technological blockade in the past, to the initiative of key raw materials, China is redefining the rules of global high-end manufacturing through a “compliant, controllable” supply system.