China is increasing scrutiny on indium exports, a critical metal for AI chips, raising concerns about potential export curbs. Buyers report heightened customs checks and demands for end-customer information, though the practice is not uniform. This comes as the G7 forms a critical minerals alliance to counter China's dominance.
Heightened scrutiny and potential export curbs on indium by China could disrupt the supply chain for AI chips, impacting the rapidly growing artificial intelligence industry and potentially influencing global efforts to diversify critical mineral sourcing.
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.
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