AI Optical Interconnect Materials: InP Substrate Prices Expected to Rise 42%-78% on Supply Tightness

According to Nomura Securities' latest research, as cited by Serenity on July 6, upstream photonic material prices for AI optical interconnects are expected to rise significantly due to supply-demand imbalance. InP (indium phosphide) substrates are projected to see price increases of 42%-76% for 2-inch wafers and 78% for 3-inch wafers, while EML epitaxial wafers may rise 50%-75% for 2-inch specifications and over 40% for 3-inch CW variants.

The tightness stems from major cloud service providers rapidly expanding AI data center infrastructure, straining the entire optical communications supply chain across materials, component demand, and production capacity.