A shortage of indium phosphide (InP) substrates is creating a bottleneck for AI data centers and high-speed optical interconnects. IntelliEPI, a compound semiconductor supplier, is implementing changes to its operations, including an 'Epi-only' model where customers supply their own substrates and developing recycled substrate technology. The company, which manufactures in the US, is expanding its facilities and plans to increase InP production capacity by about 50% by 2027.