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Events / Geopolitical / China Restricts Indium Phosphide Exports
International export restrictions

China Restricts Indium Phosphide Exports

Analysis based on 9 articles · First reported Apr 20, 2026 · Last updated Jun 11, 2026

Sentiment
-70
Attention
8
Articles
9
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard
Market Impact

China's export restrictions on Indium phosphide have caused a 250% price surge for InP wafers, directly impacting the profitability and supply chains of companies like Coherent, Inc. and AXT, Inc. This disruption threatens the global rollout of AI data centers, leading to increased costs and potential delays for the entire semiconductor and AI industries.

Semiconductor Artificial Intelligence Telecommunications
Event Summary

China has implemented export restrictions on indium phosphide (InP) since February 2025, a critical material for high-speed optical chips used in AI data centers. This move has caused significant disruptions in the global supply chain, leading to a 250% price increase for InP wafers. U.S. companies like Coherent, Inc. and Lumentum, which are major photonic product makers, are severely affected, with Coherent, Inc. warning of shortages and doubling its InP wafer capacity. AXT, Inc., a top InP substrate producer, faces substantial challenges due to permit delays. The U.S. government, through President Donald Trump's delegation, has engaged China to address these delays. China's actions are seen as a strategic 'materials chokepoint' to control the optical-module ecosystem. Meanwhile, Chinese domestic manufacturers like Germanium and China — Guangdong are rapidly expanding production, though their export approvals are likely to be limited.

Entities Involved
oth
Indium phosphide
Indium phosphide (InP) is a highly strategic material essential for high-speed optical chips in AI data centers. Its price has surged 250% due to China's export restrictions, making it a critical bottleneck in AI data center buildouts.
Importance 100.0 Sentiment 80.0
cnt
China
China has implemented export restrictions on indium phosphide, using it as a trade weapon that could disrupt the global rollout of AI data centers. China is the world's top producer of indium.
Importance 100.0 Sentiment -70.0
stock
AXT, Inc.
AXT, Inc. is the world's second-largest indium phosphide substrate producer, manufacturing most of its products in China, and faces significant challenges due to export permit delays, impacting its ability to fulfill orders.
Importance 90.0 Sentiment -70.0
stock
Coherent, Inc.
Coherent, Inc. is a major U.S. photonic product maker and chipmaker that has warned of indium phosphide shortages and is directly affected by China's export restrictions, leading it to double its InP wafer capacity in Texas.
Importance 90.0 Sentiment -60.0
stock
Lumentum
Lumentum is a U.S. photonic product maker that has received investment from Nvidia and is experiencing supply disruptions due to InP export restrictions, being sold out through 2028.
Importance 70.0 Sentiment -50.0
cmdt
Germanium
Germanium is a domestic Chinese leader in indium phosphide substrate manufacturing, rapidly scaling production capacity and in talks with Chinese officials for export approvals.
Importance 60.0 Sentiment 30.0
stock
Sumitomo Electric Industries
Sumitomo Electric Industries is a Japanese supplier of indium phosphide substrates, and a potential alternative source for U.S. firms, though it consumes much of its output internally.
Importance 60.0 Sentiment 20.0
loc
China — Guangdong
China — Guangdong is a domestic Chinese leader in indium phosphide substrate manufacturing, launching new investment projects to expand production capacity and in talks for export approvals.
Importance 60.0 Sentiment 30.0
per
Paul Anderson (businessman)
Paul Anderson (businessman), CEO of Coherent, Inc., traveled to China with a U.S. business delegation to raise concerns about delays in China's indium phosphide export licenses.
Importance 60.0 Sentiment 0.0
oth
VPEC
VPEC is a Taiwanese optical products maker that has faced indium phosphide substrate disruptions due to AXT, Inc.'s permit delays.
Importance 50.0 Sentiment -40.0
priv
LandMark Optoelectronics
LandMark Optoelectronics is a Taiwanese optical products maker that has faced indium phosphide substrate disruptions from AXT, Inc.'s permit delays and has signed a long-term supply contract with Sumitomo Electric Industries.
Importance 50.0 Sentiment -40.0
stock
Nvidia
Nvidia has invested $2 billion in photonic product makers Coherent, Inc. and Lumentum, indicating its reliance on the materials affected by the InP export restrictions.
Importance 50.0 Sentiment 0.0
priv
JX Advanced Metals Corporation
JX Advanced Metals Corporation accounts for around 10% of global indium phosphide substrate manufacturing, making it a significant player in the supply chain.
Importance 40.0 Sentiment 0.0
priv
Zhuhai Dingtai Xinyuan
Zhuhai Dingtai Xinyuan is a domestic Chinese leader in indium phosphide substrate manufacturing, benefiting from China's export restrictions.
Importance 30.0 Sentiment 10.0
stock
Marvell Technology
Marvell Technology acquired Celestial AI to tap into photonics work, highlighting the industry's move towards photonics which relies on indium phosphide.
Importance 30.0 Sentiment 0.0
+ 5 more entities View on Dashboard
Relationships
China related ↔ Coherent, Inc.
China related ↔ Germanium
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