The next silicon? AI data centre material faces price spike amid China supply crunch

SCMP TechAugust 17, 2026en

The artificial intelligence boom is driving demand for optical modules that enable ultra-fast data transmission in data centres, with the latest beneficiary a chemical compound that is seeing an unprecedented surge in prices. Indium phosphide (InP) is used to make lasers that convert electrical signals into light, allowing data to travel rapidly through fibre-optic cables. As a major producer of the material, China has seen prices climb sharply. According to a recent report by financial services...

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