Munich startup QuantumDiamonds becomes first venture-backed firm to secure €76M non-dilutive EU Chips Act grant for quantum sensing tech that detects hidden defects in advanced chips.
In a move that reshapes European chip policy, three-year-old QuantumDiamonds has bagged €76 million in manufacturing grants under the EU Chips Act – the first startup to access this funding reserved for industrial giants – plus €15 million equity from World Fund and others.
When the European Chips Act was conceived, its manufacturing funding was envisioned for industry giants like GlobalFoundries and STMicroelectronics. Yet in June 2026, a three-year-old Munich startup called QuantumDiamonds became the first venture-backed firm to secure €76 million in non-dilutive Chips Act manufacturing grants, alongside €15 million in equity from World Fund and others.
Why Diamond-Based Inspection Matters
QuantumDiamonds uses synthetic diamonds with atomic-scale defects (nitrogen-vacancy centers) to perform non-destructive 3D current imaging at nanoscale resolution – a capability that reveals defects inside advanced chip packages that traditional optical and X-ray tools miss. As chips adopt 3D stacking and geometries shrink below 2nm, yield loss from invisible defects costs manufacturers millions per week. The company’s QDm.1 system can reduce that loss by 1-3 percentage points.
“Our technology turns a diamond into a quantum sensor that can map current paths with unprecedented precision,” explains CEO Kevin Berghoff. “For fabs, that means catching defects that previously went undetected until final testing – saving huge costs and improving yields.” The system works by measuring the magnetic fields generated by electric currents; the NV centers in diamond act as atomic-scale magnetometers.
First Startup to Crack the Chips Act
The EU Chips Act, adopted in 2023, allocated €43 billion to boost semiconductor production in Europe. But its manufacturing pillar was designed to support large-scale facilities. QuantumDiamonds’ grant came under a little-known provision for “innovative production equipment” that allows smaller players to apply if their technology is deemed critical for sovereignty.
“This is a landmark,” says investor Daria Saharova of World Fund. “It proves that deep tech startups can access non-dilutive funding traditionally reserved for incumbents. It signals a shift in European innovation policy.” The grant covers 40% of the costs for building a pilot production line in Munich, with the remaining €15 million equity round closing in July 2026.
Competitive Landscape
QuantumDiamonds competes with established inspection toolmakers like KLA and Applied Materials, whose optical and e-beam systems dominate the market. However, those tools struggle with 3D structures – a growing problem as chips become more complex. Swiss startup Qnami also uses NV centers but focused on scanning probe microscopy; it was recently acquired by Quantum Design, highlighting market consolidation.
“We are not trying to replace KLA,” Berghoff notes. “Their tools excel at surface inspection. Our diamond sensor adds a new dimension – seeing inside the package. That’s where the industry is heading.” The QDm.1 system is currently being evaluated by three major fabs in Europe and Asia, with first commercial shipments expected in early 2027.
Strategic Significance for Europe
Europe produces only 10% of global chips yet consumes 20%, creating a vulnerability that the Chips Act aims to address. QuantumDiamonds’ technology could become a ‘must-have’ for fabs worldwide, positioning Europe to lead in semiconductor inspection equipment – directly analogous to ASML’s dominance in lithography.
The funding’s signaling effect is equally important: QD’s success opens the door for other deep tech startups to access non-dilutive manufacturing support, potentially reshaping EU innovation policy. As the world races to secure chip supply chains, QuantumDiamonds proves that cutting-edge science can translate into industrial reality – and that Europe’s quantum sensing ecosystem is ready for prime time.
Looking back, the semiconductor inspection market has historically been dominated by US and Japanese companies. In the 1990s, KLA-Tencor (now KLA) pioneered optical defect detection, while Applied Materials built its e-beam expertise. The rise of 3D NAND and advanced packaging in the 2010s created new challenges that traditional tools could not fully solve. QuantumDiamonds’ approach follows a pattern seen with other disruptive inspection technologies – such as X-ray microscopy for TSV metrology – that initially targeted niche applications before becoming standard. Similarly, diamond-based quantum sensing, originally confined to academic labs at universities like Stuttgart and Ulm, is now transitioning to commercial deployment, mirroring the trajectory of scanning electron microscopes that moved from research to fab floors over a decade.
