[News] InP Gains Traction: Sumitomo Initiates Epitaxial Wafer Mass Production, Wuhan Tianyuan Enters Market

The market for Indium Phosphide (InP), a critical material in optical communications, has recently seen significant developments. Japanese chemical giant Sumitomo Chemical announced the commercial mass production of 4-inch InP epitaxial wafers, targeting JPY 10 billion in sales by the mid-2030s.

Concurrently, Chinese environmental services provider Wuhan Tianyuan Environmental Protection Co., Ltd. (Wuhan Tianyuan) acquired a 60% stake in Zhongxun Semiconductor for CNY 7.5 million to enter the InP substrate market, planning an additional CNY 67 million in supporting investments.

Sumitomo Announces Mass Production of 4-Inch InP Epitaxial Wafers, Targeting JPY 10 Billion in Sales

On August 31, Sumitomo announced the establishment of a mass production system for 4-inch InP epitaxial wafers at its Ibaraki Works in Hitachi, Ibaraki Prefecture, and officially commenced commercial sales. As one of the few pure-play foundries in Japan capable of stable InP epi-wafer mass production, the company expanded its capacity to address the technological trend of Optoelectronic Convergence in AI data centers.

Sumitomo boasts over 25 years of mass production experience in Gallium Arsenide (GaAs) and Gallium Nitride (GaN) epitaxial wafers. By transferring its proprietary composition control, thin-film stacking, and crystal growth process control technologies to InP epi-wafer production, the company achieved high uniformity in crystal structure, high mass-production reproducibility, and uniform film thickness.

Sumitomo plans to integrate InP epitaxial wafers into its existing compound semiconductor portfolio—which includes GaN substrates, GaN epi-wafers, and GaAs epi-wafers—with a target of reaching approximately JPY 10 billion in sales by the mid-2030s.

Wuhan Tianyuan Acquires 60% Stake in Zhongxun Semiconductor for CNY 7.5 Million to Enter InP Substrate Market

In late August, Wuhan Tianyuan announced the completion of its acquisition of a 60% stake in Zhongxun Semiconductor (Jiangsu) Co., Ltd., marking its official entry into the InP substrate sector.

The acquisition consideration was CNY 7.5 million. Wuhan Tianyuan plans to allocate an additional CNY 67 million for equipment procurement, facility construction, and working capital, bringing the total planned investment to approximately CNY 74.5 million.

Zhongxun Semiconductor specializes in the R&D, production, and sales of compound semiconductor substrates, including InP. Holding 29 active patents, the company has established trial production capabilities for 2-to-4-inch single-crystal InP substrates, achieving a yield rate of approximately 30% in the single-crystal growth process.

It is currently advancing the commercial ramp-up of 4-inch products and the R&D of 6-inch substrate technology. Sample shipments have been completed and parameter validations obtained from several leading semiconductor clients. As of 1H26, Zhongxun Semiconductor has not generated commercial revenue yet.

Founded in 2009 with a core focus on landfill leachate treatment, Wuhan Tianyuan rebranded from “Tianyuan Environmental Protection” to “Tianyuan Group” in May last year.

The company established a dual-core strategy of “Environmental Protection + Green Energy” while expanding into AI infrastructure and digital-intelligence applications. To date, it has secured CNY 150 million in computing power center construction orders and expanded into computing-power and power-grid synergy, Solid-State Transformer (SST) power supply systems, and integrated computing cabins.

(Photo credit: Sumitomo Chemical)