Sumitomo Chemical has begun mass production and sales of 4-inch indium phosphide (InP) epitaxial wafers, targeting a critical materials bottleneck as AI data centers drive demand for faster, higher-capacity and more energy-efficient data processing.

 

The Japanese chemical giant has established a mass-production system for the compound semiconductor wafers at its Ibaraki Works in Hitachi, Ibaraki Prefecture, positioning itself as one of the few Japanese epi houses capable of stable mass production of InP epitaxial wafers.

 

The company expects its InP epitaxial wafer product lineup to generate around ¥10 billion in sales by the mid-2030s.

 

The move comes as the rapid expansion of generative AI, IoT, cloud services and communications infrastructure pushes data centers to process unprecedented volumes of information. AI data centers face mounting pressure to increase processing performance while containing soaring power consumption.

 

Sumitomo Chemical sees photonic-electronic convergence technologies as a key answer to that challenge. These technologies use optical signals alongside electrical circuits to enable faster, higher-capacity data processing and communications while reducing power consumption.

 

InP epitaxial wafers are a core material for high-performance optical semiconductor devices that convert electrical signals into optical signals and back again. Their use is expanding in next-generation data centers and high-speed communications networks, with demand expected to rise substantially in the coming years.

 

Producing InP epitaxial wafers at scale, however, is technically demanding. Manufacturers must precisely control material composition and surface conditions during high-temperature epitaxial growth while maintaining tight process control over the entire manufacturing chain, including raw-material gases.

 

Sumitomo Chemical said it leveraged more than 25 years of mass-production experience with gallium arsenide (GaAs) and gallium nitride (GaN) epitaxial wafers to overcome those challenges.

 

The company has applied its proprietary technologies for composition control, thin-film stacking and crystal-growth process control to establish an InP production system designed to combine high quality with high productivity.

 

The new wafers feature a uniform crystal structure, consistent film thickness and reproducibility in mass production — characteristics Sumitomo Chemical says will help strengthen the material supply chain supporting the wider adoption of photonic-electronic convergence technologies.

 

The company plans to use the launch to accelerate its expansion in the fast-growing AI data center and high-speed networking markets.

 

Sumitomo Chemical has identified its ICT & Mobility Solutions business as a key growth driver and is prioritizing semiconductor-related operations. InP epitaxial wafers will now join its existing compound semiconductor portfolio, which includes GaN substrates, GaN epitaxial wafers and GaAs epitaxial wafers.

 

The company aims to expand further across growth markets including wireless communications, power semiconductors and data centers — areas at the heart of the next generation of digital infrastructure.

 

The broader goal is clear: build the semiconductor-material supply base needed for faster, more energy-efficient computing and help accelerate the transition toward a smart society.