Chinese Export Restrictions on Indium Phosphide Impact Global AI Development

China's export controls on indium phosphide, a critical material for high-speed optical chips in AI data centers, are creating significant global challenges. These restrictions, in place since early 2025, are causing delays in export licenses and are perceived as a strategic trade tool. The move could impede the worldwide deployment of advanced AI data centers, affecting the development of faster and more energy-efficient AI components.