While both Matcha and Gyokuro are made from leaves that are shaded, the processing is different.
Shaded leaves, after harvesting are steamed for both types of tea. After steaming leaves meant for matcha eventually are then dried without rolling and refined (removing stems and veins, and chopping into smaller flakes). This pre-ground leaf is called tencha.
Gyokuro is made with the sencha process of steaming, then rolling/drying, and finally drying and finishing (removal of stems and fannings, sometimes green roasting).
Both Tencha and Gyokuro, particularly higher grades, may be ages for a few months before they are released for sale. This reduces the bitterness caused by catechin, and makes the leaf flavor smoother.
Powdering Gyokuro is rare but not unheard of, and here is one example.
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