AI Data-Center Boom Drives InP Shortage, Spurs Taiwan Expansion

Indium phosphide, or InP, substrates are a critical input for high-speed optical communications components. Surging investment in AI data centers and related infrastructure is lifting demand for faster interconnects and optical transceivers, tightening supplies further upstream. The squeeze is putting Taiwan epitaxy suppliers Visual Photonics Epitaxy, LandMark Optoelectronics and IntelliEPI in focus as customers seek dependable access to materials and additional production capacity.

Industry reports indicate InP substrate prices have risen three times in succession, with one supplier describing availability as so constrained that buyers cannot secure material even when willing to pay. Visual Photonics Epitaxy, LandMark Optoelectronics and IntelliEPI are responding by locking in substrate supplies and expanding capacity. The report did not disclose the size of the price increases, investment budgets or commissioning dates, but persistent shortages could support orders and earnings momentum.