The gap between supply and demand of highly pure red phosphorus is expanding, and phosphorus chemical companies are competing to enter the market.

The continuous increase in demand for high-speed optical modules in the construction of AI computing data centers has been transmitted to the upstream of the industrial chain, directly exacerbating the supply-demand contradiction of electronic-grade high-purity red phosphorus, the core raw material of indium phosphide substrates, resulting in a continuous expansion of the supply-demand gap. Currently, the main suppliers of high-purity red phosphorus in the world are two chemical giants, Chuo Kagaku and RASA Industries of Japan, which together occupy over 80% of the market share. According to the interviews, in the face of global supply tensions, many domestic phosphorus chemical companies are accelerating the competition for electronic-grade high-purity red phosphorus, a high-value-added new track. Among them, companies in Hubei, Guizhou, and other regions have entered the trial production stage and have passed verification by indium phosphide substrate manufacturers. At the same time, related products of listed companies such as Xingfu Electronics have also been successfully developed and are undergoing industrialization demonstration.