“Indium, a silvery-white metal named for its indigo blue line in the atomic spectrum, is not on any of China’s export control lists.”
“But several buyers and customers have flagged to Reuters that they have recently faced increased checks and scrutiny by the Chinese Customs over their purchases of the metal. Chinese authorities in some cases demanded additional information about which the end-customer is and where they are based, according to some of the buyers.”
“China produces about 70% of all the indium in the world. The metal is widely used in liquid crystal displays (LCD), but its most important application nowadays is that it is key to making indium phosphide, the crucial component for high-speed high-performance AI chips.”
“Concerns about a potential Chinese squeeze on indium supply amid the boom in the AI industry come in the week in which the G7 leaders formed a critical minerals alliance, pledging to boost critical mineral production and cooperation to counter China’s dominance in the sector.”
See also: EU to propose diversification law to drive de-risking from China
“Von der Leyen said the Commission will propose a measure to promote diversification because businesses had de-risked at far too slow a pace. The issue came to a head last year when China exploited its dominance in processing of critical minerals by placing export restrictions on rare earths.”