China Tightens Indium Export Checks Amid Rising AI Demand

China has intensified scrutiny over indium exports, effective June 19, 2026, sparking concerns among buyers that the metal could be added to Beijing's export control regime. The move comes as demand for indium, a crucial component for next-generation data centers, rises significantly due to its use in high-speed optical chips for artificial intelligence. China accounts for nearly 70% of the world's indium production, primarily a byproduct of zinc refining. While traditionally used in displays and solder, indium is also essential for making indium phosphide, a key material for advanced AI infrastructure. This increased oversight signals China's potential leveraging of its dominant supply position as a trade instrument.