GaAs replaces InP in AI data center optics as supply tightens

As artificial intelligence workloads scale globally, data center interconnect speeds are rising sharply, moving from 800G toward 1.6T. These interconnects rely on optical components—tiny semiconductor devices that convert electrical signals to light and back—to move data across campus-scale and longer-distance networks. Indium phosphide (InP) has become the critical material for this work, particularly for longer-distance transmission where its superior performance is essential. However, InP supply has become severely constrained. In response, equipment makers are increasingly turning to gallium arsenide (GaAs), a related semiconductor material that has historically played a smaller role in data center optics. While GaAs cannot match InP's performance over long distances, it performs adequately for short-reach links—the connections between servers and switches within a data center. The shift reflects a pragmatic trade-off: as InP supplies tighten, manufacturers are deploying GaAs where the technical requirements allow, freeing scarce InP for applications that demand it most. This material substitution is not a sign of technological progress but rather a constraint-driven adaptation that will likely persist as long as InP remains in short supply relative to AI-driven infrastructure demand.