EDP Corporation
7794・Growth Market・Other Products
Business
EDP Corporation is an AIST (National Institute of Advanced Industrial Science and Technology) spin-off venture established in 2009 with the aim of commercializing AIST's diamond single crystal manufacturing technology. Centered on microwave plasma CVD and ion implantation-based separation technology, it is the only company capable of mass-producing single crystals of up to 30×30mm, among the largest in the world, and deploys products across five fields: seed crystals for lab-grown diamond manufacturing, substrates and wafers for semiconductor devices, optical components and heat sinks, tool materials, and jewelry/accessories. Its main customers are artificial gemstone manufacturers primarily based in India, and diamond device research institutions in Japan and overseas (such as Honda R&D Co., Ltd.), and it is listed on the Growth Market of the Tokyo Stock Exchange.
Business Model
Using ion implantation separation technology and mosaic crystal technology for which exclusive licensing rights were obtained from AIST, the company mass-produces plate-shaped diamond single crystals and sells them by application as Seed Crystal (7×7mm to 20×20mm), semiconductor substrates and wafers (including 1-inch), optical components, and jewelry. By repeatedly separating child crystals from a parent crystal, more than 20 products can be produced from a single parent crystal, resulting in high material efficiency. Of net sales of ¥516 million (FY2026, ending March 2026), Substrates and Wafers accounted for the largest share at ¥349 million, while Seed Crystal remained at only ¥117 million.
Company Strengths
The company succeeded in commercializing a 30×30mm single crystal in February 2025, and based on this, launched a 1-inch (25mm diameter) wafer in April 2025. The company positions single crystals of this size as the largest in the world, giving it a technological advantage that is difficult for competitors to replicate in a short period. Furthermore, in May 2026, the company succeeded in developing a 53×53mm mosaic crystal, establishing a pathway toward the production of 2-inch wafers.
Under a patent license agreement with the National Institute of Advanced Industrial Science and Technology (AIST) (exclusive license until October 31, 2026), the company holds exclusive rights to 13 patents in Japan, the US, Europe, the UK, Germany, and France, covering technologies such as ion implantation separation technology and mosaic crystal manufacturing methods. The contract structure grants a non-exclusive ordinary license after the exclusive period expires, valid until the patents' expiration, forming a technological barrier to entry.
The company can accommodate a wide range of specifications with thicknesses of 0.03 to 3mm, spanning seed crystals (7×7mm to 20×20mm), various substrates (epitaxial growth substrates, low-resistance substrates, (111)-plane substrates, etc.), 1-inch wafers, optical components and heat sinks, and jewelry. In the order results for the current consolidated fiscal year, Substrates and Wafers expanded by 116.6% year on year, with the ability to respond to diverse customer needs contributing to the increase in orders.
ENVALITH's Perspective
Performance Trend
Net sales for FY2026 (ending March 2026) were ¥516 million (down 42.8% from ¥902 million in the prior period). Seed Crystal sales plunged to ¥117 million (down 78.0% year on year), while Substrates and Wafers, at ¥349 million (up 6.0% year on year), became the largest component of sales. Cost of sales of ¥1,077 million continued to exceed net sales, resulting in a negative spread, and gross loss came to ¥561 million. Adding SG&A expenses of ¥800 million, the operating loss widened to ¥1,360 million. An impairment loss of ¥1,067 million was recorded as an extraordinary loss, and net loss came to ¥2,416 million. Total assets were sharply compressed, from ¥4,378 million to ¥2,510 million. As an external factor, the continued decline in LGD (Lab-Grown Diamond) market prices (with LGD accounting for over 50% share in the U.S.) directly hit demand for Seed Crystal. For FY2027 (ending March 2027), net sales are forecast at ¥1,100 million and operating loss at ¥283 million.
Growth Strategy
Shift away from seed crystal dependence: three-pronged transformation through full-scale India sales, commercialization of 2-inch wafers, and expanded jewelry sales
SFD India (Surat, India) obtained an import license in February 2026 and secured long-term orders from major Indian users. For FY2027 (ending March 2027), the company targets sales exceeding the FY2025 (ended March 2025) scale (approximately ¥530 million) and expects total sales of ¥600 million or more across the Lab-Grown Diamond related business as a whole. The export license acquisition process (more than 2 months) is a delivery lead-time constraint.
The company is advancing development of 2-inch (50mm diameter) mosaic wafers for diamond devices. Although the December 2025 completion target was not met, progress has been made in identifying technical challenges. The company aims for an early sales launch and establishment of a mass production system, accelerating development in parallel with joint research with Honda R&D (large-size, low-resistance wafers).
Through the absorption-type merger of SFD (effective March 31, 2026), the company is integrating domestic jewelry sales operations, streamlining indirect functions, and accelerating decision-making. To expand sales of approximately ¥126 million in loose stone inventory, the company is advancing negotiations with domestic jewelry companies and department stores (exhibited at the Tokyo International Jewellery Fair in January 2026). SFD Antwerp has been temporarily suspended while the business structure is under review.
On March 19, 2026, the company signed a letter of intent with Honda R&D regarding joint research on materials for diamond devices. The company is advancing development toward the commercialization of large-size and low-resistance wafers, aiming to establish a de facto standard for adoption in automotive power devices. Multiple product deployments are anticipated.
Amid continued negative operating cash flow, the company is considering proposals for adoption under NEDO and other public support programs. It is also pursuing public funding acquisition in cooperation with partner companies. In addition, the company plans to execute new fundraising as early as possible in FY2027 (ending March 2027) to secure the funds necessary for wafer and other development activities.
Last updated: July 19, 2026