Michael Hurlston, CEO of U.S. optical communications giant Lumentum (LITE-US), issued a warning at the AI summit held in Paris, France, stating that indium phosphide (InP), an essential compound semiconductor for laser components in AI data centers, is facing a supply crisis more severe than that of memory. On this day (4th), closely related III-V semiconductor stocks in Taiwan, including United Microelectronics (3081-TW) and Global Communication Semiconductors (3081-TW), saw over five stocks surge to their daily trading limits.

According to Michael Hurlston, Lumentum currently operates five indium phosphide wafer fabrication plants, yet its shipment volume remains over 30% below customer demand—an even larger gap than last quarter. Even combining the production capacities of Lumentum and Coherent (COHR-US), they may still fail to meet the demand from NVIDIA (NVDA-US) and other clients, fueling today’s broad rally in InP-related stocks.

In the market, in addition to United Microelectronics and Global Communication Semiconductors, stocks such as Unity Semiconductor - KY (4991-TW), IET-KY (4971-TW), and Win Semiconductors (3105-TW) also hit their daily trading limits. Holtek Semiconductor (8086-TW) rose by more than half of the daily limit.

Financial institutions point out that constraints in InP supply stem not only from manufacturing capacity but also from inherent limitations in raw material sources and geopolitical risks, placing the entire supply chain under structural material shortages.

Analysts note that today's strong performance in optical communication stocks has been primarily driven by III-V InP-related names. From a stock price perspective, there remains room for rebound, as many previously fell below their monthly moving averages. Investors are advised to monitor related revenue figures and selectively build positions in quality stocks for continued exposure.

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  • Source: PR Times
  • Category: News
  • Organizations: Lumentum / Coherent / NVIDIA