China moves to choke the metal that powers AI optical chips and Washington is scrambling to respond

China is tightening customs scrutiny on indium exports, demanding end-user disclosures from foreign buyers of a metal that feeds the optical chips powering AI data centers. With InP wafer prices up 250% since Beijing restricted indium phosphide in 2025, Coherent's CEO lobbying in Beijing, and the Pentagon seeking to stockpile 403 tons, the supply chain chokepoint is no longer theoretical.