Growing customs scrutiny of indium exports from China is fueling speculation that Beijing could expand its export controls to include the metal, which is essential for producing indium phosphide used in next-generation AI data center chips. China accounts for roughly 70% of global indium production.

According to Reuters, Chinese authorities are requesting more detailed information about shipments and end users, while approval times have lengthened in some cases. The developments come after China imposed export controls on indium phosphide earlier this year, a move that has already complicated supply chains for advanced semiconductor applications.

Industry participants fear that the additional oversight may signal future restrictions, despite the fact that there is no evidence of blocks on shipments, and some buyers report no direct impacts.