Source: The Next Web
China's tightening export controls on indium phosphide—a critical material for high-speed semiconductor manufacturing—targets a supply chain chokepoint below the GPU and foundry competition: rare materials. The move forces Western chip makers and AI companies to develop costly alternatives, secure long-term contracts at inflated prices, or accept dependency on Beijing's export licensing. Indium phosphide isn't easily substitutable in the gallium arsenide compounds needed for RF components and high-frequency processors used in data center interconnects and defense applications.