AXT, Inc. Supplies First 8-Inch Gallium Arsenide Wafers to Major Customer

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 http://www.axt.com.

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