AI Boom Shifts Optical Supply Chain Focus to Critical Materials
Dow Jones
6 hours ago
0223 GMT - The next phase of AI infrastructure growth could be shaped less by chip design and more by access to key materials used in high-speed networking equipment, according to research firm Digitimes. The rapid adoption of faster optical modules for AI data centers is driving a shift toward semiconductor-style manufacturing, helping expand the market to an estimated $45.4 billion by 2030 from $12.6 billion in 2025. But the transition is exposing a new bottleneck: demand for indium phosphide, a material used in laser components, is expected to outstrip supply from 2026, potentially slowing shipments of next-generation products. Suppliers are increasingly using investments and acquisitions to secure capacity and future growth, Digitimes says.
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