Core Insights - The superhard materials industry is crucial for modern manufacturing, involving the research, production, and application of synthetic diamonds and cubic boron nitride (CBN) [1][3] - China's superhard materials industry has evolved from breaking technological barriers to dominating the mid-to-low-end market, with industrial diamond production accounting for over 95% of global output in 2023 [1][4] - The industry is strategically important for national high-end manufacturing and technology independence, with goals set for 2025 to maintain a 95% global production share of basic materials and achieve over 30% localization of high-end products [3][4] Industry Development - The superhard materials industry in China has formed a closed-loop ecosystem from upstream domestic substitution to midstream monopoly and downstream application explosion [4] - Upstream: High-purity graphite and catalyst agents are supplied at scale, with 100% localization of six-sided press machines, while semiconductor-grade CVD equipment remains reliant on imports [4] - Midstream: China has achieved a global monopoly in industrial diamonds, cultivated diamonds, and cutting tools, with cultivated diamonds expected to penetrate new markets worth hundreds of billions by 2025 [4] - Downstream: Applications have expanded from traditional machining to high-end fields like semiconductor wafer cutting and quantum computing [4] Government Support and Market Dynamics - Local governments are prioritizing the superhard materials industry for investment attraction, offering incentives, land resources, and establishing industrial parks [5] - Collaboration with universities and research institutions is emphasized to promote integrated development and provide technical support [5] - The industry has seen the emergence of competitive leading enterprises, supported by favorable policies and market dynamics [5] Key Enterprises - Notable companies in the superhard materials sector include: - Zhongbing Hongjian Co., Ltd. with a registered capital of 139,255.89 million RMB, focusing on smart ammunition and superhard materials technology [9][11] - Henan Huanghe Whirlwind Co., Ltd. with a registered capital of 144,218.45 million RMB, recognized for its technological innovation [5] - Henan Sifangda Superhard Materials Co., Ltd. with a registered capital of 48,590.883 million RMB, known for its industry standards [5] Challenges and Future Outlook - Despite its global dominance, the industry faces structural challenges, including a low capacity utilization rate of 60% and a talent gap exceeding 30,000 in high-end fields [13][15] - The reliance on imports for core equipment, particularly in semiconductor-grade CVD technology, is a critical issue that needs addressing [15] - Initiatives are underway to establish talent training bases and enhance domestic production capabilities, aiming for a 30% localization rate in high-end CVD equipment by 2025 [15]