China Tightens Customs Scrutiny on Indium Exports on June 19, Affecting 70% of Global Supply

According to Reuters, China tightened customs scrutiny of indium exports on June 19, raising concerns about potential trade restrictions on the critical AI chip metal. Indium phosphide, made from indium, is essential for high-speed optical chips used in AI data centers. China produces nearly 70% of global indium supply. While indium metal itself remains off the export control list, Beijing added indium phosphide to its export control list in February 2025. European and North American buyers reported that Chinese customs now require end-user details and approval times have extended from same-day clearance to several days.

The US Defense Logistics Agency has also flagged indium as a strategic vulnerability and seeks to stockpile up to 403 tons over three years, underscoring the metal's importance to AI infrastructure security.