Sumitomo Chemical Begins Mass Production and Sales of InP Epitaxial Wafers

Sumitomo Chemical has established a mass production system for 4-inch indium phosphide (InP) epitaxial wafers at its Ibaraki Works in Hitachi, Ibaraki Prefecture, and has begun selling the products. The company targets around 10 billion JPY in sales from its InP epitaxial wafer lineup by the mid-2030s. The wafers serve optical semiconductor devices used in AI data centers and high-speed networks, and they will join the company's existing GaN and GaAs compound semiconductor materials.

Key facts

Market context

Indium phosphide is a compound semiconductor used to make lasers, photodetectors and other optical components that convert electrical signals into light and back again. Epitaxial wafers are thin crystal layers grown on a substrate, and they form the base for these devices. Demand is driven mainly by optical transceivers and high-speed networking gear inside hyperscale and AI data centers, where bandwidth needs keep rising, along with telecom and wireless communications equipment. Compound semiconductors such as gallium arsenide and gallium nitride serve adjacent markets, including power electronics and radio-frequency devices. InP supply is concentrated among a small number of specialist producers, so a new domestic source in Japan can add qualification options for device makers and reduce reliance on a narrow supplier base. Buyers typically judge such materials on crystal quality, wafer uniformity and consistent volume supply.

Source: official release on sumitomo-chem.co.jp. Summary and context written by Market Krystal.