Abstract
It is shown that originally linearly polarized light can become spontaneously circularly polarized as it propagates through a semiconductor with a pronounced two-photonbiexciton resonance. The intensity difference Δ between left- and right-hand circularly polarized light undergoes a second-order phase transition at a critical total intensity. The instability is due to the process of induced absorption from the exciton to the biexciton. It should be observable in transmission experiments through CuCl platelets or films.

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