CHINA EXPORT CONTROLS THREATEN CHIP SUBSTRATE SUPPLY

Indium phosphide substrates are essential materials used in high-speed communications and optoelectronic applications. China's tightening export controls have introduced significant uncertainty around their availability, according to Meier. The warning adds to growing concerns about semiconductor supply chain fragility. While silicon remains the dominant material, specialized substrates like indium phosphide are harder to source from alternative suppliers, leaving the industry exposed to geopolitical disruptions. IQE is a UK-based semiconductor wafer manufacturer specializing in compound semiconductors. The company's alert reflects broader anxiety across the chip sector about China's ability to restrict materials critical to advanced electronics production. Industry participants are exploring supply diversification and stockpiling strategies to mitigate risks. However, the limited number of alternative suppliers globally means long-term vulnerability remains unless new production capacity emerges outside Chinese-controlled sources.