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Last Trade - 18/06/21

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Market Cap £353.7m
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Revenue £76.1m
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AXT, Inc. Supplies First 8-Inch Gallium Arsenide Wafers to Major Customer

Wed 28th April, 2021 9:06pm
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FREMONT, Calif., April 28, 2021 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS:
AXTI), a leading manufacturer of compound semiconductor substrate wafers,
today announced that is has developed and shipped its first 8-inch diameter
gallium arsenide (GaAs) substrates to a major customer. The 8-inch GaAs
substrates, which are silicon doped, n-type substrates, demonstrate low etch
pit densities (EPD) and low levels of slip lines.

“This is a significant achievement and an important milestone for AXT,”
said Morris Young, chief executive officer. “Every step up in diameter size
comes with a major increase in the technical challenge of producing it. But
AXT has always been a pioneer in this area, with the entrepreneurial spirit to
drive innovation in order to unlock the potential for new applications.
Further, the material quality of our first wafers demonstrates our commitment
to excellence and the differentiation of our VGF crystal growth process. We
are pleased to be able to offer our customers meaningful advantages in
scalability, low stress and low defect rates.”

AXT has received significant interest from several customers due to the market
development of high-volume applications, including VCSELs for 3D sensors and
LiDAR, as well as microLEDs for displays. AXT predicts a broader scaling of
the demand for 8-inch GaAs wafers when these applications are adopted.

Young went on to say, “Although we still have development work to undertake
on this project, our new world-class manufacturing facilities in Dingxing and
Kazuo can enable commercial viability of 8-inch gallium arsenide wafers. Both
of AXT’s new facilities have been purposefully designed and built for
high-volume manufacturing of compound semiconductor substrate wafers,
utilizing advanced equipment and improved automation. Further, manufacturing
volume expansion was taken into account when designing the new facilities and
we believe we have a short path to develop and launch a high-volume
manufacturing line for 8-inch GaAs substrates.”

About AXT, Inc.

AXT is a material science company that develops and manufactures
high-performance compound and single element semiconductor substrate wafers
comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge).
The company’s substrate wafers are used when a typical silicon substrate
wafer cannot meet the performance requirements of a semiconductor or
optoelectronic device. End markets include 5G infrastructure, data center
connectivity (silicon photonics), passive optical networks, LED lighting,
lasers, sensors, power amplifiers for wireless devices and satellite solar
cells. AXT’s worldwide headquarters are in Fremont, California where the
company maintains sales, administration and customer service functions. AXT
has its Asia headquarters in Beijing, China and manufacturing facilities
in three separate locations in China. In addition, as part of its supply
chain strategy, the Company has partial ownership in ten companies in China
producing raw materials for its manufacturing process. For more information,
see AXT’s website at

Forward-Looking Statements

The foregoing paragraphs contain forward-looking statements within the meaning
of the Federal securities laws, including, for example, statements regarding a
broader scaling of the demand for 8-inch GaAs wafers, future interest from
customers, the market development of high-volume applications, the undertaking
of additional development with respect to 8-inch GaAs wafers and success in
such development to enable commercial viability of 8-inch GaAs wafers and the
belief that AXT has a short path to develop and launch a high-volume
manufacturing line for 8-inch GaAs substrates. These forward-looking
statements are based upon assumptions that are subject to uncertainties and
factors relating to the company’s operations and business environment, which
could cause actual results to differ materially from those expressed or
implied in the forward-looking statements contained in the foregoing
discussion. These uncertainties and factors include, but are not limited to:
actual market demand and acceptance of 3D sensors, LiDAR or displays utilizing
microLEDs for screen displays in consumer products; process technology
constraints; impurities effecting the quality of 8-inch wafers; our ability to
scale up volume at our new sites; possible environmental restrictions on
gallium arsenide; end-user acceptance of products containing chips or devices
fabricated on our substrates; our ability to bring new products to market;
product announcements by our competitors; the ability to control costs and
improve efficiency; the ability to utilize our manufacturing capacity; product
yields and their impact on gross margins; possible factory shutdowns as a
result of air pollution in China; COVID-19 or other outbreaks of a contagious
disease; policies and regulations in China and other factors as set forth in
the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and
other filings made with the Securities and Exchange Commission. Each of these
factors is difficult to predict and many are beyond the company’s control.
The company does not undertake any obligation to update any forward-looking
statement, as a result of new information, future events or otherwise.

 Contacts:  Gary Fischer Chief Financial Officer (510) 438-4700  Leslie Green Green Communications Consulting, LLC (650) 312-9060  


GlobeNewswire, Inc. 2021
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