Coherent CEO Lobbies China for InP Licenses While Nvidia Commits $2B to Photonics
COHR•Coherent CEO Jim Anderson joined a US delegation to China to address delays in export licenses for indium phosphide, controlled by Beijing since February 2025 and essential for AI data centre optical chips. Nvidia invested $2 billion into Coherent's photonic unit in March as InP shortages threaten data centre buildouts.
1. CEO’s Advocacy Trip
In early June, Coherent CEO Jim Anderson joined a US business delegation traveling with the presidential entourage to Beijing. His primary objective was securing timely export licenses for indium phosphide, highlighting the material’s strategic importance and the delays hampering Coherent’s supply chain.
2. Impact of InP Export Controls
Since February 2025, China has imposed strict export licensing on indium phosphide, a core compound for high-speed optical chips used in AI data centre photonics. These restrictions have created a bottleneck for developers seeking faster, energy-efficient data transmission through optical fibres.
3. Industry Investments
Recognizing the material’s critical shortage, Nvidia allocated $2 billion in March to Coherent’s photonic division. Similar investments by other hyperscaler partners and semiconductor firms aim to mitigate supply risks and accelerate in-house photonic component development.
4. Strategic Implications
Beijing’s targeted export curbs exemplify a growing ‘materials chokepoint’ strategy, slowing upstream compound shipments rather than finished products. This tactic could reshape global AI infrastructure timelines by controlling access to irreplaceable photonic materials.
