China tightens export scrutiny on indium, raising fears of supply chain restrictions for AI chips
Tighter export scrutiny could constrain indium shipments used in electronics and chip-related supply chains.
Source →The trace
How it reaches your house.
Starting from AXT Inc, we walked the supply graph hop by hop to the goods you buy and the companies you own. Each step is the engine’s reasoning, scored for confidence and cited where a source backs it.
First impact
AXT Inc →Prices riseIndium phosphide (InP) substrates
AXT is a major InP substrate producer with an export-permit backlog, and the cited 250% wafer price increase indicates a large cost shock in the substrate market.
“AXT, the world’s second-largest InP substrate producer and a major supplier to Coherent...has a significant backlog of orders. ... Since China introduced export restrictions on InP, the average price for a 6-inch InP wafer has surged 250% to $5,000.”
82% confidenceCited →AXT Inc →DelaysCoherent
Coherent is mainly supplied by AXT and supplier switching requires lengthy qualification cycles, so AXT permit delays likely stretch Coherent’s InP substrate lead times.
“AXT, the world’s second-largest InP substrate producer and a major supplier to Coherent...companies such as Coherent, mainly supplied by AXT...are unlikely to switch suppliers easily, as moving to a new supplier requires lengthy qualification cycles”
82% confidence
Where it lands
What you buy, and what you own.
Goods you buy
Semiconductors and chips
Companies you may own
CoherentVPECLandMark Optoelectronics
Tap a company to see what it told the SEC could break it.
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