Indium phosphide export controls deal a devastating blow.

First, let’s talk about what is being controlled: high-purity indium, InP compounds, InP substrates, and InP epitaxial wafers are all subject to deep and stringent controls.

Subsequent impacts:
1. Companies like AXT that produce domestically and sell abroad won’t be able to ship their goods out anymore—unless they have a very large amount of inventory stockpiled overseas.
2. Companies like Sumitomo in Japan that buy indium to produce InP substrates will lose upstream materials, resulting in production coming to a halt, though it seems Japanese companies generally stockpile supplies for 6 months.
3. Like Cohr Lite