AXTI

AXT Inc. manufactures compound semiconductor substrates used in wireless communications, LED lighting, and optoelectronics applications, producing gallium arsenide and indium phosphide wafers serving semiconductor device manufacturers worldwide. Headquartered in Fremont, California with manufacturing in China, AXT specializes in producing high-purity crystalline substrates used as base materials for manufacturing RF power amplifiers in smartphones, vertical-cavity surface-emitting lasers for 3D sensing and data communications, and LED chips for solid-state lighting. The company serves customers including Broadcom, Qorvo, Skyworks, Lumentum, and other leading semiconductor manufacturers requiring precisely engineered substrates meeting stringent specifications for crystal quality, uniformity, and purity enabling reliable device performance. AXT generates revenues through substrate sales priced based on wafer sizes, crystal quality grades, and order volumes, with pricing and demand heavily influenced by end-market dynamics including smartphone production volumes, data center investment cycles, and LED lighting adoption rates. The company reported annual revenues of approximately $100-120 million with profitability highly cyclical reflecting semiconductor industry dynamics where demand fluctuates based on consumer electronics sales, 5G network buildouts, and data center capital expenditures driving substrate consumption. AXT operates manufacturing facilities in China benefiting from lower labor costs and proximity to major semiconductor customers concentrated in Asia, while facing geopolitical risks including U.S.-China trade tensions, export control regulations, and supply chain vulnerabilities affecting raw material sourcing and customer access. Recent strategic initiatives include developing larger-diameter substrates supporting next-generation devices, qualifying materials for emerging applications including 5G infrastructure and automotive radar systems, and diversifying customer bases reducing concentration risks where top customers historically represented majority of revenues. The company faces competition from substrate manufacturers including Sumitomo Electric, Freiberger, and Chinese producers, plus potential substitution threats as silicon-based alternatives emerge for certain RF and optoelectronic applications.