AXT Announces Purchase of New Manufacturing Facility in Dingxing, China
September 12 2017 - 6:30AM
AXT, Inc. (Nasdaq:AXTI), a leading manufacturer of compound
semiconductor substrates, today announced that it has completed the
purchase of its new manufacturing facility in the city of Dingxing
in the People's Republic of China. Dingxing, located in the
province of Hebei and under the jurisdiction of the
prefecture-level city of Baoding, is approximately a 90-minute
drive south of the company’s current Beijing location.
The new site, which features ample space for
expansion, currently has three existing buildings, which comprise
approximately 140,000 sq. feet of manufacturing space, and 50,000
sq. feet designated for offices and dormitories. The existing
structures will enable the company to move more quickly to
production. AXT has already begun to prepare the site for
gallium arsenide substrate manufacturing, and is planning for a
staged relocation of its gallium arsenide equipment and personnel
throughout 2017 and 2018, pursuant to its relocation plan. Initial
qualification substrates are expected to be available in the fourth
calendar quarter of 2017. The company expects to have
production-level quantities from both its current site in Beijing
and the new Dingxing site for a period of time, and then gradually
increase production volume at the new site.
AXT has acquired a total of approximately 18.8
acres and expects to increase manufacturing capacity at the new
location as needed to meet customer requirements. In addition, AXT
will continue to evaluate the potential timing of relocation of its
indium phosphide and germanium substrate manufacturing, which is
expected to remain at the Beijing facility while the relocation of
its gallium arsenide business is completed.
“Securing the location of our new facility is a
positive step for AXT,” said Morris Young, CEO. “We have worked
closely and collaboratively with both local and central government
authorities in China to fulfill the government’s request for the
relocation of our gallium arsenide production, while ensuring that
we can continue to serve the needs of our customers and support the
growth of our business. This step underscores the desire of
all parties involved to make our relocation a success. I want
to thank the city officials of Dingxing and Baoding for welcoming
AXT to this site.”
Young continued, “With its relative close
proximity to our current facility, its existing manufacturing
space, and its room for expansion, we believe our new location
positions us for both a successful and efficient relocation of our
gallium arsenide business, as well as the expansion of our capacity
as current and emerging applications for our technology increase
customer demand. Our goal is to make our new location a world-class
manufacturing facility and a showcase of our capabilities for
customers and investors.”
Wilson Lin, chief operating officer, said, “Our
dedicated manufacturing and operations teams have been working
diligently over the past year to prepare for a smooth and efficient
transition for our customers. We are committed to supporting their
requirements from our current location, while providing an
efficient qualification process and transition plan for the new
facility. I am confident that we have a highly skilled team in
place, and the deep executive experience and oversight to ensure
our success.”
About AXT, Inc.
AXT designs, develops, manufactures and
distributes high-performance compound and single element
semiconductor substrates comprising indium phosphide (InP), gallium
arsenide (GaAs) and germanium (Ge) through its manufacturing
facilities in Beijing, China. In addition, AXT maintains its
sales, administration and customer service functions at its
headquarters in Fremont, California. The company’s substrate
products are used primarily in lighting display applications,
wireless communications, fiber optic communications and solar cell
applications. Its vertical gradient freeze (VGF) process technology
for manufacturing semiconductor substrates provides significant
benefits over other methods and enabled AXT to become a leading
manufacturer of such substrates. AXT has manufacturing facilities
in China and invests in joint ventures in China producing raw
materials. For more information, see AXT’s website at
http://www.axt.com.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking
statements within the meaning of the Federal securities laws,
including, for example, statements about the timing of the
availability of qualification substrates, the timeline for the
relocation of our China manufacturing operations, our ability to
add capacity if applications for our technology increase demand and
the capability of our teams to transition into the new facility.
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: the
ability to secure permits in a timely manner; the ability to engage
service providers; overall conditions in the markets in which the
company competes; global financial conditions and uncertainties;
policies and regulations in China; market acceptance and demand for
the company’s products; the impact of factory closures or other
events causing delays by our customers on the timing of sales of
our products; our ability to control costs, our ability to utilize
our manufacturing capacity; product yields and their impact on
gross margins; 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.
Contact:Gary FischerChief Financial Officer(510)
438-4700
Leslie GreenInvestor Relations (650) 312-9060
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Aug 2024 to Sep 2024
AXT (NASDAQ:AXTI)
Historical Stock Chart
From Sep 2023 to Sep 2024