InP compound semiconductors break AI power and bandwidth barriers

The rise of InP compound semiconductors isn't a standalone breakthrough—it's a structural response to AI’s insatiable demand for bandwidth and energy efficiency. Its low electron scattering directly enables 800G/1.6T optical interconnects, pressuring silicon photonics into cost-driven niches. Upstream, MOCVD capacity and ultra-pure phosphorus sourcing will tighten, especially as China’s InP epitaxy self-sufficiency remains below 15%, amplifying supply chain risk premiums. The U.S. may extend export controls on InP-related EDA and fabrication tools, mirroring its advanced logic chip strategy. In response, Lumentum and Coherent are likely to vertically integrate to secure material access, while Chinese players like Source Photonics accelerate state-backed R&D alliances. Within 18 months, InP will anchor co-packaged optics and terahertz communications, emerging as a new flashpoint in U.S.-China tech infrastructure rivalry.