Editor’s Note
This article highlights a potential early beneficiary of Japan’s pledged U.S. investment, with synthetic diamond production reportedly leading the field.
Kyodo News reported on the 5th that synthetic diamond production in the United States is emerging as the most likely candidate to be the first project under Japan’s promised $550 billion investment in the US, a commitment made during last year’s trade negotiations. Kyodo also reported that discussions are underway regarding a power project related to SoftBank Group’s data centers, and there is a possibility that the two governments may announce multiple projects simultaneously.
Synthetic diamonds, also used in semiconductors, are valued for their hardness and durability and are utilized for industrial purposes such as cutting and polishing. Concerns about stable supply have been raised since China, a major producer, included them in its export control list last year. A Japanese government official told Kyodo News that synthetic diamonds are “extremely important materials.”
The ‘factsheet’ released by the two countries last October includes an entry regarding ‘Element Six,’ a major synthetic diamond company with bases in the US and UK, mentioning the ‘construction of a diamond abrasive particle manufacturing facility.’ The project scale is $500 million (approximately 730 billion won), with Japanese companies also acting as product buyers.
The two governments agreed last July that the US would lower tariffs on Japan in exchange for Japanese investment in the US and have held several joint committee meetings since December last year. The news agency reported that the two governments are aiming to expedite discussions and make an announcement this month, following Japan’s House of Representatives election on the 8th.
a Japanese government official said regarding this matter, expressing concern about the possibility of not obtaining approval from the final decision-maker, US President Donald Trump.