📊Executive Summary

The article discusses the strengthening demand for compound semiconductors driven by AI infrastructure projects and aerospace production amid geopolitical instability. IQE, a semiconductor wafer supplier, forecasts over 20% revenue growth in 2026, citing increased demand for advanced wafers used in optical communications and defense applications. However, supply chain risks are highlighted, particularly concerning material shortages of gallium and indium phosphide due to export restrictions from China, which are raising raw material costs. The aerospace sector is also facing production challenges due to engine shortages and quality issues, despite a commitment to expansion. Overall, the article indicates that procurement teams should prepare for constrained supply and rising costs in the semiconductor market....