Vital Materials plans to invest RMB 2 billion (approximately US$300 million) in a new indium phosphide (InP) and gallium arsenide (GaAs) wafer production facility in Quzhou, Zhejiang, China.

Operated by Vital Micro-Electronics Technologies (Zhejiang) Co., Ltd, the facility is planned to have an annual production capacity of 6 million wafers in 4- to 6-inch sizes. Construction is expected to begin in August 2026 and is anticipated to take approximately three years.

The project reflects continued investment in compound semiconductor manufacturing to support growing demand for optical communications, AI-related applications, and high-speed data transmission.