China’s Control Over Indium Phosphide Threatens AI Infrastructure

China is tightening checks on indium phosphide (InP), a crucial material for high-speed optical chips used in AI data centers. InP is essential as data centers transition to photonics technology, relying on optical fibers instead of copper for data transmission. With China producing 70% of the world’s indium, export controls on InP have caused significant delays in obtaining licenses for its shipment since early 2025. The scarcity of InP has led to a surge in prices, with a six-inch InP wafer now costing around $5,000, a 250% increase from $1,400 before the controls. This shortage has impacted major players like…