China Tightens Export Controls on Indium Amid AI Data Center Demand

Jun 19, 2026

China, which produces nearly 70% of the world's indium, is increasing scrutiny over exports of the metal. Indium is critical for high-speed chips used in AI data centers, and buyers now face new information requests and delays. The move has sparked fears of a formal export ban, prompting the U.S. Defense Logistics Agency to plan a strategic stockpile of up to 403 tons.

China indium export scrutiny

▪China is increasing scrutiny over its exports of indium, leading some buyers to fear it may be added to an export control regime.
▪A major North American buyer reported that approval times for indium purchases from China have increased from same-day to several days.
▪A European buyer of indium was asked for the first time in 2026 to disclose information about end users.
▪A North American buyer suspected that new reporting requirements are "a precursor to restrictions or outright bans on exports."

Indium supply chain dominance

▪In February 2025, China placed indium phosphide on an export control list.
▪China produces nearly 70% of the world's indium, which is a byproduct of zinc refining.

AI data center applications

▪Indium is the raw material for making indium phosphide, which is used for high-speed optical chips in AI data centers.
▪The CEO of Nvidia-backed chipmaker Coherent traveled to Beijing with President Donald Trump in May to raise the issue of indium phosphide restrictions.

U.S. strategic stockpiling response

▪The U.S. has identified indium as a potential vulnerability for its supply chains.
▪The U.S. Defense Logistics Agency released a request for proposals in 2026 to stockpile up to 403 tons of indium over three years.