en.Wedoany.com Reported - China's customs authorities have recently intensified scrutiny on indium exports. This silvery-white metal is a key material for manufacturing high-speed chips used in AI data centers. The move has drawn external attention, with speculation that China may add indium to its export control list, following previous restrictions on other critical minerals.
Indium is currently not on any of China's export control lists. Multiple buyers and clients told Reuters that they have encountered stricter customs inspections and reviews when purchasing indium. According to some buyers, Chinese authorities in certain cases require additional information about the end customer and their location. However, this enhanced scrutiny is not applied to all Chinese indium buyers, as representatives from other companies said they have not yet seen any tightening, although they have heard of similar practices targeting other buyers.
China produces approximately 70% of the world's indium. The metal is widely used in liquid crystal display manufacturing, but its most important application is in producing indium phosphide—a key component for high-speed, high-performance AI chips. Unlike metallic indium, indium phosphide has been on China's export control list since February 2025.
Over the past year and a half, China has leveraged its market dominance in critical minerals and rare earth elements to impose export restrictions or tighten export controls on minerals and metals vital to magnet manufacturing, defense, automotive, and clean energy industries. Amid the AI industry boom, concerns that China may squeeze indium supplies arise just as leaders of the Group of Seven (G7) formed a critical minerals alliance this week, pledging to increase production and cooperation in critical minerals to counter China's dominance in the sector.
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