China's dominance over indium phosphide (InP) exports is posing a significant challenge to the global rollout of AI data centres, according to economictimes.indiatimes.com. Indium phosphide is a critical semiconductor material used in photonic chips that power AI hardware, and China's export controls have tightened recently, raising concerns about supply chain disruptions.
The restrictions on InP exports have emerged amid increasing geopolitical tensions and China's strategic focus on controlling key technology materials. This control limits the availability of InP to manufacturers outside China, potentially delaying the production and deployment of AI data centres worldwide. Industry stakeholders warn that this bottleneck could slow down AI infrastructure expansion, as photonic chips are essential for high-speed data processing in AI applications.
The impact of China's export controls on indium phosphide is significant because AI data centres require advanced photonic chips to handle massive data flows efficiently. Comparable semiconductor supply constraints in recent years have shown how critical materials can influence technology rollouts. With AI adoption accelerating globally, any disruption in the supply of InP could affect cloud service providers, AI startups, and enterprises relying on AI-driven solutions.
The Economic Times report highlights that the semiconductor industry is closely monitoring China's export policies on indium phosphide. The next major industry event is the Global Semiconductor Summit scheduled for July 2026, where supply chain issues including InP availability will be a key topic of discussion.