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

Indium phosphate prices are experiencing an unprecedented surge due to rising demand for optical modules in data centers. This compound is essential for manufacturing lasers that convert electrical signals into light, enabling rapid data transmission through fiber-optic cables. As a major producer, China has seen prices climb sharply. A recent financial services report indicates that this increase reflects the growing demand for AI technologies that require fast and efficient data transfer.