China’s InP Export Controls Delay AI Data Center Rollouts, Nvidia Backs $2B Photonics Push
NVDA•China’s export controls on indium phosphide since February 2025 have delayed license approvals for optical-chip shipments critical to AI data centers, prompting Nvidia-backed Coherent’s CEO to raise the issue during a US-China delegation. Nvidia committed $2 billion in March to photonics firms Coherent and Lumentum, bolstering InP supply for optical modules.
1. Chinese Export Controls Risk AI Rollout
China imposed export controls on indium phosphide in February 2025, a material essential for high-speed optical chips in AI data centers. These restrictions have held up license approvals for critical shipments, threatening to slow the global buildout of energy-efficient AI infrastructure.
2. CEO Raises Export Delay Issue
Coherent’s CEO Jim Anderson addressed the InP licensing delays during a US-China business delegation visit in June 2026, highlighting the bottleneck’s strategic importance. The topic also surfaced in trade negotiations in Seoul, signaling its role as a lever in broader technology talks.
3. Nvidia’s $2B Push in Photonics
In March, Nvidia committed $2 billion to photonics specialists Coherent and Lumentum to strengthen InP-based supply chains. The funding aims to accelerate development of optical modules, ensuring steady material availability for future AI compute deployments.
