In 2011, the world held its breath when Japan was hit by a magnitude 9.0 earthquake and tsunami, and Japan's Fukushima Daiichi nuclear power plant suffered a cooling system failure. That worry was not unfounded. The resulting meltdown spread highly concentrated radioactive material in many directions, making it one of the worst nuclear-related disasters in history.
More than 10 years later, cleanup efforts are still continuing. Last month, the Japanese government began test procedures to remove radioactive material in and around the nuclear power plant, an important step in the plant's decommissioning process, which is expected to be completed by 2051.
Okuma Diamond Device (ODD), an innovative Japanese startup, is playing an interesting role in this process through its diamond chips and diamond chip-powered amplifiers used in efforts to remove radioactive materials. Now, it has raised 4 billion yen, or about $27 million, to build the world's first diamond semiconductor manufacturing facility near Okuma Town, also in Fukushima Prefecture.
ODD's plan is to build the factory in January 2025 and have it operational by summer 2026.
Why use diamond chips instead of traditional silicon-based semiconductors?
Diamond is known as a wide bandgap (WBG) semiconductor material, and others include SiC (silicon carbide) and GaN (gallium nitride). WBG materials are believed to have better power conversion efficiency and better thermal management.
Unlike silicon-based CPUs, GPUs, and NPUs, diamond-based chips have no circuitry. Diamond semiconductors act more like powerful controllers than miniature power supplies, Coral Capital partner Ken Nishimura told TechCrunch. He said diamond semiconductors would be used in large facilities such as nuclear power plants that require extremely high temperatures and radiation levels that silicon-based chips cannot withstand.
Using facilities at the National Institute of Advanced Industrial Science and Technology (AIST) and Hokkaido University, they succeeded in producing a prototype diamond semiconductor amplifier that operates at temperatures below 300°C.
“The diamond semiconductor we develop is fundamentally different from traditional silicon-based chips due to its superior material properties,” Yuhei Nagai, CFO of Okuma Diamond Devices, said in an exclusive interview with TechCrunch. . Compared to other advanced semiconductors such as SiC and GaN, diamond semiconductors offer superior power conversion efficiency and improve thermal management for next-generation technologies such as 6G, space, defense, and nuclear power, he continued. .
It's also worth noting that diamond chips can be made from methane gas, potentially allowing full production in Japan. This is in contrast to GaN, which relies on material sourcing that is tightly controlled by China.
ODD is focused on developing “pure diamond semiconductors” rather than GaN semiconductors on diamond substrates, Nagai said. According to a recent report, the market size for diamond materials used in chips is expected to grow from $113.7 million in 2023 to $10 billion by 2032.
Image credit: Okuma Diamond Device (ODD)
The startup is a spinout from Japan's National Institute of Advanced Industrial Science and Technology (AIST) and Hokkaido University, and was founded in 2021 specifically to support the decommissioning of the Fukushima Daiichi nuclear power plant.
The two co-founders, Dr. Junichi Kaneko and Dr. Hitoshi Umezawa, have been researching diamond chips for over 20 years. They found their work in the spotlight after the disaster, which led to more resources for research and development and spurred the creation of startups. ODD produced the world's first practical diamond chip in 2021.
The leap between theory, chip, and final product is still large. The two co-founders are also leading a broader national project for the Japanese government to produce a physical product that can remove radioactive materials from natural disasters.
” [ODD’s] “The prototype is a world first, and no one else has been able to develop a diamond semiconductor amplifier that functions to this extent,” said Nagai.
A handful of global companies are also developing diamond semiconductors, including France's Diamfab, Britain's Element Six, and Japan's ALMT, a subsidiary of Sumitomo Electric Industries.
ODD differentiates itself by claiming to be the only company capable of prototyping the world's diamond semiconductor amplifiers with end-to-end expertise from substrate to packaging.
ODD is also in talks with more than 10 potential customers around the world in the nuclear power plant, aerospace and communications industries, Nagai said. The field is drawing even more attention this week after it was revealed that Google has signed a deal to work on supplying nuclear power to data centers.
This financing was led by partners at GLOBIS Capital, with participation from Coral Capital, aSTART, Green Co-Invest Investment, Japan Post Bank Spiral Regional Innovation Fund, and Sumitomo Mitsui, bringing the total amount raised since inception to approximately $45 million (67 billion yen). Insurance Venture Capital, SMBC Venture Capital, etc.
The startup, which currently has 27 employees, has also received approximately $15 million in government subsidies from the Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of Internal Affairs and Communications, Ministry of Land, Infrastructure, Transport and Tourism, and the Reconstruction Agency.