The White House announced China will address U.S. concerns regarding critical rare earth mineral shortages. This follows Beijing’s April 2025 export controls that significantly reduced global supplies of materials like indium. The White House expects China’s restrictive export control regime to remain in place despite the announcement.
Coherent holds a 40% global market share in indium phosphide optical components. The company’s CEO recently joined a U.S. executive delegation to Beijing to address these supply chain risks.
Experts warn that slow or politically influenced licensing could increase input costs for Coherent. These disruptions may hinder capacity expansion and prevent the company from meeting high demand from hyperscale data center clients.