U.S. officials are actively pressing China regarding delays in the approval of indium phosphide (InP) exports, a critical material essential for photonic chips used in high-speed AI data centers. This concern was raised by Coherent CEO Jim Anderson during a business delegation trip to China in May and has been a point of discussion in U.S.-China trade talks. The shortage of InP poses significant challenges for photonics manufacturers, with AXT citing it as their biggest current hurdle and Coherent warning of a potential shortage. The rising prices of 6-inch InP wafers, which have increased by 250% to about $5,000, further underscore the urgency of resolving these export approval delays.
AXT: AXT, Inc. manufactures compound semiconductor substrates, including indium phosphide wafers essential for photonic devices and high-speed components. The company has identified delays in InP export permits from China as its most pressing operational issue in the context of growing AI infrastructure demand.
Coherent: Coherent Corp. specializes in photonics, lasers, and optical components used in data communications and advanced electronics. CEO Jim Anderson raised indium phosphide export delays during a May U.S. business delegation visit to China and related trade discussions, highlighting supply constraints for AI data center components.
Lumentum: Lumentum Holdings Inc. develops and produces optical and photonic solutions for telecommunications and data center networks. The company faces extended product availability challenges tied to indium phosphide supply limitations amid surging demand for AI-related infrastructure.
Jim Anderson: Jim Anderson serves as Chief Executive Officer of Coherent Corp. He highlighted indium phosphide export approval delays from China during U.S.-China trade engagements in May, bringing attention to material bottlenecks affecting AI hardware production.
Supply Chain: Indium phosphide serves as a critical material for photonic chips powering high-speed AI data center infrastructure.
Industry Pressure: Photonics manufacturers are navigating production constraints linked to indium phosphide availability for AI buildouts.
Trade Discussions: U.S. officials have engaged Chinese counterparts on export approval delays for indium phosphide during recent bilateral talks.