China Tightens Oversight of Indium Exports Amid AI Chip Boom

While indium remains absent from China’s official export control lists, the recent administrative pressure signals a shift in strategy for the nation that currently produces roughly 70% of the world’s supply. Indium phosphide, a derivative already under export restrictions since February 2025, serves as a vital component for the high-speed semiconductors powering modern data centers.

This move aligns with a broader pattern of leveraging mineral dominance. Over the past eighteen months, Beijing has restricted the flow of rare earth elements and metals essential to automotive, defense, and green energy manufacturing. The timing of this heightened oversight coincides with the G7’s recent formation of a critical minerals alliance, a coalition designed specifically to reduce global reliance on Chinese supply chains. While some firms report business as usual, the inconsistent application of these checks suggests a targeted approach rather than a blanket policy, leaving global manufacturers anxious about potential future bottlenecks.