IQE Plc CEO Jutta Meier warned that China’s export controls are intensifying a supply crisis in indium phosphide, a compound semiconductor material used in optical communications and AI data-center infrastructure. China added InP to its export control list around early February 2025 and accounts for about 70% of global indium production. Average prices for six-inch InP wafers have risen roughly 250% since the controls took effect to about $5,000 each. IQE reported first-half 2026 revenue of £64.6 million, up 43% from a year earlier, while adjusted EBITDA reached £6.0 million. The company is converting existing capacity to increase InP production in the second half of 2026 and pursuing long-term supply agreements. It plans to move from London's Alternative Investment Market to the Main Market in the first half of 2027. Lumentum and Coherent have also highlighted InP supply risks, while AXT and Sumitomo are exposed to restrictions on indium feedstock.