Defect inspection is paramount within the closed-loop manufacturing system. However, existing datasets for defect inspection often lack the precision and semantic granularity required for practical applications. In this paper, we introduce the Defect Spectrum, a comprehensive benchmark that offers precise, semantic-abundant, and large-scale annotations for a wide range of industrial defects. Building on four key industrial benchmarks, our dataset refines existing annotations and introduces rich semantic details, distinguishing multiple defect types within a single image. With our dataset, we were able to achieve an increase of 10.74% in the Recall rate, and a decrease of 33.10% in the False Positive Rate (FPR) from the industrial simulation experiment. Furthermore, we introduce Defect-Gen, a two-stage diffusion-based generator designed to create high-quality and diverse defective images, even when working with limited defective data. The synthetic images generated by Defect-Gen significantly enhance the performance of defect segmentation models, achieving an improvement in mIoU scores up to 9.85 on Defect-Spectrum subsets. Overall, The Defect Spectrum dataset demonstrates its potential in defect inspection research, offering a solid platform for testing and refining advanced models. Our codes and datasets are released in https://envision-research.github.io/Defect_Spectrum.