A {100} indium phosphide (InP) wafer has multiplies of olive-shaped etch pits on the back side surface of the wafer, wherein the olive shape refers to a shape with its both ends being narrow and its middle being wide, e.g., an oval shape. A method of manufacturing the {100} indium phosphide wafer comprises: etching the wafer by immersing it into an etching solution to produce etch pits; washing the wafer with deionized water; protecting the back side surface of the wafer; mechanical polishing and chemical polishing the front side surface of the wafer, and then washing it with deionized water; de-protecting the back side surface of the wafer; wherein the etching solution comprises an acidic substance, deionized water and an oxidizing agent. The wafer can be heated uniformly during the epitaxial growth and thus displays good application effect.