Prices of Indium Phosphide (InP) substrates and epi-wafers are set to jump over 10% in the 4th quarter – the biggest price hike in history – as the AI-driven optical communications boom causes severe shortages, media report.
One supplier reportedly said inventory is so tight that “even with cash, you might not get anything.” InP substrate prices have risen for three consecutive quarters and are heading into a fourth, while epi-wafers are entering their third consecutive increase. Valued for high-frequency, high-speed data transmission, InP is a critical material as AI data centers shift from copper to optical interconnects (optics in, copper out.) $AXT(AXTI.US) $SMTOF #SumitomoElectric 5802 $Lumentum(LITE.US) $Coherent Corp.(COHR.US) $Applied Optoelectronics(AAOI.US)Source: Dan Nystedt