Overview
- Several buyers told Reuters on June 19 that Chinese customs have begun asking for end‑user details and turning same‑day approvals into multiday delays, though Reuters has not identified any confirmed shipment blocks.
- China produces roughly 70% of the world’s indium, the metal that is refined into indium phosphide feedstock for high‑speed optical chips used inside AI data centres.
- Beijing added indium phosphide to its export control list in February 2025, a move that industry sources say contributed to license delays and a roughly 250% spike in 6‑inch InP wafer prices.
- Governments and companies are responding: the U.S. Defense Logistics Agency issued a request to stockpile up to 403 tons of indium, and industry leaders pressed Beijing during a May visit with President Trump to seek relief.
- If controls on indium expand, firms face higher component costs that could raise data‑centre construction bills and speed efforts to diversify suppliers, scale recycling and develop chip alternatives such as silicon photonics.