China eases InP substrate exports, lifting compound semiconductor supply - digitimes

China has eased export controls on indium phosphide (InP) substrates, addressing supply bottlenecks in the compound semiconductor industry. InP substrates are critical materials for high-performance o... Read original →

China’s relaxation of indium phosphide (InP) substrate export controls is a calibrated move in its tech sovereignty strategy, not merely a supply fix. It directly lowers procurement costs and lead times for optical module makers, accelerating mass production of 800G/1.6T transceivers and boosting yields of domestic laser chips and epitaxial wafers. While this eases short-term material mismatches caused by U.S. equipment bans, firms must account for potential policy volatility in compliance planning. Competitors in the U.S., Japan, and Europe will likely double down on alternative platforms—such as GaAs or silicon photonics—and shift backend capacity to Southeast Asia. Over the next 12–24 months, China may leverage its InP dominance to shape mid-tier optical communication standards, though high-end progress remains bottlenecked by restricted MOCVD tools and EDA access. This signals a strategic pivot from reactive decoupling to selective openness, positioning China as an active rule-shaper in global semiconductor governance.