Key facts
- China is increasing scrutiny on its exports of indium, a key component for AI chips.
- Buyers have reported heightened customs checks and requests for end-customer information.
- Indium is not currently on China's official export control lists.
- China accounts for about 70% of global indium production.
- Indium phosphide, crucial for AI chips, has been on China's export control list since February 2025.
China has intensified its scrutiny of indium exports, a metal essential for the production of high-speed chips used in AI data centers. While indium itself is not on China's export control list, several buyers have reported facing increased checks from Chinese Customs, which in some cases have requested additional information about the end-customer and their location. This heightened scrutiny, though not uniformly applied to all buyers, has raised concerns about potential future export curbs, mirroring Beijing's actions with other critical minerals. China is the world's dominant producer of indium, accounting for approximately 70% of global supply. The metal is crucial for indium phosphide, a key component in high-performance AI chips, and indium phosphide has been subject to Chinese export controls since February 2025. The development comes as G7 leaders have recently established a critical minerals alliance aimed at increasing production and cooperation to challenge China's market dominance in the sector.