This marks the first time a startup has received manufacturing funding through the Chips Act, a resource previously reserved for established industry giants.
The investment will support the construction of a €152 million production facility in Munich, as Europe seeks to strengthen its domestic semiconductor supply chain and technological sovereignty.
The company’s core technology utilizes atomic defects in lab-grown diamonds to detect magnetic fields with extreme precision, effectively creating a microscope that can visualize electricity flowing through semiconductors.
Unlike traditional optical or X-ray inspection tools that struggle with modern 3D chip designs, the QuantumDiamonds system can pinpoint defects buried deep within stacked packages without damaging the hardware.
This capability is critical for improving manufacturing yields, as even a minor increase in production efficiency can be worth millions of dollars for high-volume chipmakers.
QuantumDiamonds is currently working with nine of the world’s ten largest semiconductor firms and has recently deployed systems in the United States and Taiwan.
As the chip inspection market is projected to reach $10.9 billion by 2026, the company aims to scale its operations to compete with dominant industry incumbents like KLA and Applied Materials.
By securing significant government backing, the startup is positioned as a potential strategic supplier for the global electronics industry, addressing the increasing demand for advanced testing tools driven by the AI and semiconductor boom.