China Tightens Indium Export Checks, Threatening Optical Chip Supplies
COHR•China has begun demanding end-user disclosures and extended approval times for indium exports, raising concerns of future metal restrictions. The country supplies nearly 70% of global indium, a key input for making indium phosphide used in optical chips, potentially delaying components for companies like Coherent.
1. China Increases Indium Export Oversight
China has begun requiring detailed end-user disclosures for indium shipments and extended customs approval times from same-day to several days. These measures, applied unevenly across buyers, signal potential inclusion of indium metal in broader export controls beyond existing restrictions on indium phosphide.
2. Impact on Optical Chip Manufacturers
Indium phosphide is essential for high-speed optical chips used in AI data centers, and Coherent’s CEO raised the issue on a trip to Beijing. Growing scrutiny has led to processing delays and concerns that future bans could disrupt supply of critical components.
3. Strategic Stockpiling and Vulnerability
The U.S. Defense Logistics Agency has requested proposals to stockpile up to 403 tons of indium over three years, highlighting indium as a strategic vulnerability. Buyers worry that current reporting requirements presage tighter export bans impacting global supply chains.
