Clayton Christensen, author of the Innovator's Dilemma, would likely chuckle over Wired 11.09: The New Diamond Age. In it, Joshua Davis reports on two start up companies, Gemesis Cultured Diamonds in Florida and Apollo Diamond in Boston. They are implementing two different forms of a disruptive technology: mass-manufacture of large, gem-quality diamonds at costs a fraction of that of mined gems. One ultimate market target is semiconductor manufacturing, where a diamond chip will sustain temperatures that would melt silicon. In the meantime, they plan to finance the build-out of their factories by making and selling large, gem-quality diamonds below the price of the De Beers - Diamond Trading Company.
The Wired story indicates that De Beers has created the "Gem Defensive Programme" to address the issue of manufactured diamonds. They have provided testing machines to large gem labs to assist detection of synthetic diamonds. However, Wired indicates that the gems now being made may not be discernable by such generally available tools.
Gemesis is the most immediate threat, already undercutting De Beers, while steadily expanding their factory. Gemesis uses technology acquired from Russia and perfected in the US, according to the article. Wired reports that the trade association Jewelers Vigilance Committee has petitioned the Federal Trade Commission to require Gemesis to label its stones as synthetic. The FTC has guides for such things, such as: In The Loupe: Advertising Diamonds, Gemstones and Pearls. Gemesis calls their stones "cultured," and in April 2001, Wired says the FTC issued an opinion on this subject, for which this humble blogger is searching.
Apollo Diamond uses a technology different from Gemesis, on which Apollo's Robert Linares received US Patent No. 6,582,513 B1 in June. Wired indicates that the Apollo stones, made using chemical vapor deposition (CVD), may be a bigger threat in the long term. Its manufactured gems may be indiscernable from natural diamonds using any foreseeable technology, suggests Wired.
As Christensen might predict, despite the known potential for manufactured diamond wafers to dramatically alter the semiconductor industry, Intel was not aware of the Apollo technology in June 2003 when interviewed, according to Wired. Wired quoted an Intel executive: "It takes us about 10 years to evaluate a new material. We have a lot of investment in silicon. We're not about to abandon that."
Christensen might chuckle and say: "And that is the needed opening ... for an innovator with no investment in the prior generation of technology ... to supplant the established player by implementing a disruptive technology."
Posted by dougsimpson at August 14, 2003 11:53 AM | TrackBackYes, diamond based electronics are at the beginning of a new wave in electro-optics that will most likely pass by many large US based semiconductor manufacturers... at least in the short run.
Here are three diamond based applications to look out for. They represent the first 'killer aps' in diamond:
1. High desity optical data storage devices - approaching one terrabyte of removable optical data storage. Japan currently building first laser for this application. Apollo Diamond providing diamond wafers.
2. Wireless Switches - Surface Accoustic Wave filters for robust, true broadband wireless. Prototypes already being build in Japan.
3. Power Grid switched - for use in all electric vehicles, such as trains, boats, etc, and more importantly as 'intelligent' hardened switches for the power grid. Current prototypes being build by Naval Research Laboratory, Washingon DC. Diamond based switches will form the basis of the new grid (whenever it is built)
Diamond electronic are in fact best observed through the lense of history. Silicon was at a similar state in the early 1960's when vacuum electronics prevailed. A new generation of companies and thinking was needed for silicon to take-off, the innovators of the day being Intel, Motorola and National Semiconductor. None of the large vacum electronics houses survived while the upstarts grew into some of the world's largest corporations.
No one is saying that todays largest silicon based semiconductor houses are about to become extinct because of the advent of diamond based semiconductors. However, tomorrows dominant consumer electronics giants will be born of the current innovation mindset gap. Large, high growth opportunies for upstarts exist in the areas of communications, processors (and systems like Cray Computer, Sun and even Intel in the '80), power electronics and consumer electronics because of the 'Silicon Mindset' that exists in todays largest electronics companies.
Bryant Linares
President and CEO
Apollo Diamond, Inc.
SINCE I FIRST HEARD THIS STORY ON NPR RADIO,RAN OUT TO GET WIRED MAG I HAVE BEEN FASCINATED. NO
I AM NOT SURPRISED TO LEARN OF THE INTEL EXEC'S
COMMENTS. AT FIRST I THOUGHT HE MIGHT JUST BE PLAYING HIS CARDS CLOSE TO HIS VEST BUT AFTER
THINKING ABOUT IT I REALIZED IT WAS TYPICAL OF
THE PREVAILING MINDSET-KEEPING THE STATUS-QUO.
NOW I KNOW. I WORKED AS A TELEMARKETER FOR 14 YRS, FOR A FORTUNE 500 COMPANY AND ENCOUNTERD
THIS CONTINUALLY AT EVERY TURN,BY EVERY BOSS.
SEEMINGLY CRAZY COMPARISON-I KNOW. I THOUGHT
BECAUSE THIS WAS THE SCIENCES IT WOULD SOMEHOW BE DIFFERENT-MORE CIVILIZED,MORE THOUGHTFUL BUT IT'S NOT. HOW COULD THEY MISS IT. THIS TECHNOLOGY WILL ADVANCE WHETHER INTEL LIKES IT OR NOT. NO MATTER IF THEY PUT 10,000 YRS, RESEARCH INTO SILICON.
HERE'S AN INTERESTING FACT-I FORGOT THE NAME OF THEBOOK -DURING YHE GREAT SCHISM BTWN CREATIONISTS AND EVOLUTIONISTS THE SIDES WERE SPLIT BY VIRTUE OF BIRTH ORDER. ALLTHE MAIN
PLAYERS WERE STUDIED AND ALMOST TO A MAN ,ALL THE
CREATIONISTS WERE FIRST BORNS AND ALL THE EVOLUTIONISTS WERE LATTER BORNS. THERE WAS SOME
BUT VERY LITTLE WEIGHT GIVEN TO ONES PARENTS BIRTH ORDER. OBVIOUSLY THERE ARE FORCES GREATER
THAN REASON THAT EFFECT OUR BEHAVIOR. ANYWAY I'M SORRY FOR GOING ON. I'M OVERANALYTICAL, I'M REALLY EXCITED ABOUT ALL THIS NEW TECH. I'VE BEEN
ON THE INTERNET TRYING TO GET INFORMATION AND
I'VE E-MAILED AND CALLED YOUR INVESTOR RELATIONS.
I REALLY BELIEVE IN WHAT YOU'RE DOING. THIS ALONG WITH DEAN KAMERS SEGWAY AND THE WORK BEING DONE WITH GYROSCOPES,MEMS,AND POSSIBLY FUEL CELL TECHNOLOGY AND SO MANY OTHER THINGS WILL SHAKE
THE WORLD AND SCULPT OUR FUTURE. GOOD LUCK TO YOU AND YOUR FATHER.
I love diamonds and the larger the better. I only love the real ones with beautiful color, clarity and cut. I would certainly be interested in the manufactured ones now at my age. If these stones are real go for it. What companies carry the manufacture stones in the US? What is the cost per carat? Do you have a cert. with them?
I can't wait let me hear more.
Great technolgy we have today and lets get started now for the seniors can take advantage of this beautiful diamond.
Judy, if you follow the links in the original posting, they should answer your questions or lead you to those who can. The traditional diamond distribution network is quite jealous of competitors and price cutters, I hear, so you may have to dig a bit to find manufactured diamonds with the things you mention.
Doug
Posted by: Doug Simpson at October 5, 2003 08:42 PMThis suddend idea of manufactured gem qualitiy diamonds is only 20 plus years too late. I read a fantastic book in 1982 called :"The rise and fall of tghe Diamond Industry" (don't hold me to the title. In this book the author detailed the manufacture of gem diamonds claiming that the Siberian Mines were a sham and that Oppenhiemer of DeBeers has a treaty witht the Soviets to purchase all of the "manufactured" stones.
Posted by: Jeff Adams at October 6, 2003 12:27 PMJeff, the book you mention is Edward Jay Epstein "The Rise and Fall of Diamonds: The Shattering of a Brilliant Illusion" (1982). Amazon has them at http://www.amazon.com/exec/obidos/ASIN/0671412892/dougsimpson-20
Unless I misunderstand the point of the Wired article at http://www.wired.com/wired/archive/11.09/diamond_pr.html earlier technologies for manufacture of gem quality diamonds have been improved substantially in the last 20 years.
Development of the new method of chemical vapor deposition (CVD) resulted in the grant of U.S. patent 6,582,513 B1 in June 2003 (See http://patents.uspto.gov/web/patents/patog/week25/OG/html/1271-4/US06582513-20030624.html U.S. Patent law does not allow for patenting of "old" technology that has already been in practice for more than a year (if memory serves). So the Linares' patented technology would not be the same as any discussed in a 1982 book.
Or is it your point that DeBeers will simply buy out Linares, as you suggest they may have bought up the Russian output in the past? Perhaps you could clarify your message ...
Doug
Posted by: Doug Simpson at October 6, 2003 02:13 PMAre Gemesis and Apollo planning to go public so we can invest on the stock market? I have done extensive research and I believe this will do two things; De bears will have to find a new niche. The other issue that these new diamonds are taking on is technology. Once they figure out how to make wavers we will have instant processors for our computers, new TVs as the plasma flat screens will be replaced. These two companies are a gold mine. Please let me know if you find anything out about the companies going public or how I can invest.
Matt
Posted by: Matt at October 13, 2003 11:25 PMHow does this relate to the LifeGems company, offering to make "memorial" diamonds from the carbon in the cremains of your loved one--or pets?
Is that just a specialty niche to make money by offering to make diamonds from a designated carbon source?
Their website says it's a patent-pending process...
Posted by: iggy at October 15, 2003 03:13 PMi think its so awesome that i can maybe get a diamond that didn't evolve from the evils of debeers. diamonds are so pretty, but the concept of them is so insane. i mean, really, one company states "an egagement ring should be 2 months salary" and people actually listen??? well, i say that 5% of your yearly salary must be donated to me for reading this note.
(i take paypal)
Posted by: natalie at October 17, 2003 01:30 AMI just saw a speacial onthese diamonds these companies are going to make a lot of money. As mat said "These two companies are a gold mine. Please let me know if you find anything out about the companies going public or how I can invest." i would also like to know how i can invest in these companies please e-mail me
Posted by: Chris at November 22, 2003 02:34 PMhow can i purchase one of these diamonds?
Posted by: mitzi bastin at December 16, 2003 11:16 AMFirst of all, DeBeers no longer exists except as a marketing name. It was sold to Anglo-American 2.5 years ago, after the Russian 35% world gem diamond open market ruined their cartel's monopoly, and their stockpiles were sold off.
Secondly, the Huge new Canadian diamond mines, the Ekati (BHP-Billiton) and Diavik, Can. NW Territories, Lac de Gras, are the world's 3rd largest and richest mines, which with the Russians have completely undercut Anglo-American.
Thirdly, the smuggling of diamonds from Africa is NOT largely used to buy weapons, but to enrich those who smuggle them, because diamonds are way overpriced (The Diamond Deception, Nova, 2/2002 and Frontline, The Diamond Empire, PBS), show this clearly. By labelling them as 'blood' or 'conflict" diamonds, Anglo-American again hopes to lie to restrict the supply.
They were also able to bribe the FDA into forcing Gemesis and Apollo to list their diamonds as 'man made", again, restraint of trade.
However, with the Russkies selling 35% of the world's best gem diamonds off the market,with massive African diamond smuggling still continuing($500 million/yr. from Congo, alone), with full production in the new Canadian diamond mines, and with Gemesis planning to create 75-80K of gem carats a year, the price of gem diamonds had to give. It's already 60-70% less per fine gem carat than 8 years ago. A little fact our corrupt media has been bought off to suppress using advertizing monies. Guess who pays for the adverts to lie to us?
Lastly, the Chinese, the world's largest economy, have no really large diamond supplies, which they need for their massive industrial plant, the world's largest. Industrial & gem diamonds are essential for tooling, making machines, etc. Rather than depend upon outsiders for this strategic material, they are massively synthesizing both industrial and now gem diamonds.
The cartel is gone and has been for over 3 years, See the BBC announcement of this in 8/2000.
Thought You'd like to know the FACTS about diamonds, not the lies, ommissions and distortions from the U.S. national news whores.
You can easily verify these facts. Thanks and Seasons Greetings to Y'all!