That’s according to a Reuters report, which noted that China, which accounts for approximately half of global lab-created diamond production, is looking beyond the jewellery market as intensifying competition and falling prices put pressure on manufacturers.

One producer, entrepreneur Feng Canjun, told reporters that he currently directs around 70 per cent of his factory's annual output of two million carats towards jewellery. However, he aims to increase the proportion used in industrial applications to more than 50 per cent by 2030, while reducing jewellery production to a maximum of 30 per cent.

The attraction lies in the physical properties of diamonds, particularly their ability to conduct heat. As AI technology drives demand for increasingly powerful computer chips and data centres, managing the heat generated by advanced electronics has become a significant challenge.

Synthetic diamonds could offer an alternative material for cooling semiconductor components and AI infrastructure, with researchers and technology companies already exploring their potential.

The shift could have significant implications for the diamond industry. According to independent diamond consultant Robert Bouquet, the potential technology and industrial markets could eventually exceed the approximately $USD100 billion annual retail diamond jewellery business.

For jewellery retailers, the development marks an interesting shift in the industry landscape. Lab-created diamonds, initially embraced as an alternative to natural diamonds, are likely to become an increasingly important advanced manufacturing material.