China’s Export Restrictions on Indium Phosphide Disrupt AI Data Center Development

Backed chipmaker Coherent raised concerns about a shortage of indium phosphide, a critical material for high-speed optical chips used in AI data centers. The issue arose during an earnings call in early May, coinciding with CEO Jim Anderson’s discussions during a U.S. business delegation trip to China with President Donald Trump. The U.S. urgency to address China’s export controls on indium phosphide underscores its importance in the global AI data center market. This compound has become a potent trade weapon for Beijing, impacting the rollout of AI data centers worldwide. Konrad Wang, a research analyst at SemiAnalysis, highlighted the significance…