QuantumDiamonds Boosts Chip Manufacturing with EU Assistance

The race to advance chip production is intensifying, with Europe stepping into the competition. ASML, the Dutch company that nearly monopolizes chip fabrication machinery, might soon witness its success story mirrored elsewhere.

Similar to its American counterpart, the European Chips Act aims to strengthen the semiconductor industry—partially via government subsidies. QuantumDiamonds, a German startup employing an innovative method for chip inspection, is one of the beneficiaries of this support.

Thanks to the European Commission’s support, QuantumDiamonds has secured €76 million in non-dilutive funding from Germany’s federal economics ministry and the state of Bavaria. This investment will enable the company to establish a new facility in Munich dedicated to the manufacturing of semiconductor testing equipment, as part of a previously announced $178 million investment plan.

A spinoff from the Technical University of Munich (TUM), QuantumDiamonds has also completed a €15 million equity round led by VC firm World Fund, as exclusively reported by TechCrunch. Although the company opted not to disclose its valuation, it indicated that the round included investments from Bayern Kapital and existing investors, such as Creator Fund, Earlybird, First Momentum, IQ Capital, Onsight Ventures, and UnternehmerTUM.

According to CEO Kevin Berghoff, the fundraising process was relatively quick, as QuantumDiamonds was able to showcase strong customer demand. “We collaborate with almost everyone in the chip ecosystem,” he explained. With a surge in demand for various chips, there is an equal necessity for solutions that streamline the manufacturing process and boost output.

By condensing a defect detection process that usually takes weeks into a two-minute examination that doesn’t interrupt production lines, QuantumDiamonds claims it can save clients like Taiwanese foundries and Korean memory manufacturers hundreds of millions of dollars.

Berghoff noted that the hardware typically pays for itself within a few months, which also covers the subscription fees for on-site support and the startup’s software that analyzes data to provide actionable insights into manufacturing processes.

Interestingly, this represents one of the first practical uses of quantum technology; unlike traditional chips, quantum sensing is operational and can generate magnetic fields to accurately identify defects, which is a primary concern for customers. “They couldn’t care less about it being quantum,” Berghoff remarked, chuckling.

Presumably, customers are equally indifferent to the diamonds—just to clarify, these are synthetic. QuantumDiamonds exploits their tiny properties to monitor electrical flow within chips. Unlike existing inspections that only examine the top layer of a chip using a microscope-like apparatus, this method can detect defects across all layers without damaging the chip.

This capability is increasingly pertinent as chips become more multi-layered. Startups like Semron are innovating with 3D chips, and there is industry consensus that this trend is vital for AI data centers, Berghoff stated. “The reality is, transistors can’t get smaller, so to achieve similar power and compute, additional layers are increasingly being added.”

Major competitors, including U.S.-based inspection firms valued at over $100 billion, will likely adapt eventually; however, QuantumDiamonds currently enjoys the advantage of being a first mover, Berghoff noted. “No U.S. or Asian company has delivered these tools yet.” The startup is transitioning from research labs to direct collaboration with semiconductor fabrication plants, or fabs.

“At present, we possess a tool suitable for laboratory use, where testing might occur on only one out of a million chips,” Berghoff explained. “Our objective is to implement high-throughput testing, enabling 100% quality control directly within the fab.”

While these machines can be pricey, costs can vary depending on context, Berghoff indicated. “The lab tools are in the single-digit millions. The high-throughput system could range from $10 million to $15 million; however, that’s still not nearly as costly as the $400 million price tag of ASML machines. So, while it’s expensive, we remain relatively affordable for them.”

This comparison could manifest in other ways. “[QuantumDiamonds] could become Europe’s next ASML,” asserted Daria Saharova, managing partner at World Fund. While this presents an optimistic perspective from VC circles, conditions can shift. “ASML is also looking to enhance its inspection capabilities, making it a potential acquirer,” Berghoff candidly noted, even as ASML has recently hesitated about mergers and acquisitions.

For now, QuantumDiamonds’ trajectory may resemble that of another World Fund portfolio company: IQM, the Finnish quantum spinoff that recently went public. Both companies hail from Europe’s deep tech ecosystem and aim to leverage European support and funding for global expansion.

Though QuantumDiamonds is still in the early growth phases, 2026 has marked a year for global expansion, with the startup opening a regional headquarters in Taiwan and achieving its first commercial deployments in both Taiwan and the U.S. at Eurofins EAG Laboratories in Sunnyvale, California.

Additionally, the newly secured funding will assist in job creation in Munich, where the majority of its 70-member team is located. Berghoff and co-founder/CTO Fleming Bruckmaier plan to double their engineering team within the next year by recruiting skilled talent in both quantum technology and semiconductors. “We have the necessary resources here to support international growth,” Berghoff concluded.