AXT, Inc. Receives Up to $18.6 Million Purchase Order From IQE
December 18 2007 - 9:30AM
Marketwired
FREMONT, CA , a leading manufacturer of compound semiconductor
substrates, announced today that it has been awarded a production
order from IQE plc (AIM: IQE) for semi-insulating gallium arsenide
(GaAs) substrates for IQE's 2008 worldwide substrate requirements.
This agreement is valued at approximately $15.1 million, with an
option to purchase an additional $3.5 million of substrates. All
substrates ordered under this contract are to be shipped by the end
of 2008. The substrates ordered by IQE are primarily 6-inch
semi-insulating GaAs.
IQE is a leading global supplier of advanced semiconductor
wafers with products that cover a diverse range of applications,
supported by an innovative outsourced foundry services portfolio
that allows the Group to provide a 'one stop shop' for the wafer
needs of the world's leading semiconductor manufacturers.
"AXT is well positioned to be able to accommodate IQE's
increasing demand, particularly in larger diameter gallium arsenide
substrates," said Drew Nelson, president and chief executive
officer of IQE. "Its expansive manufacturing capacity, unique raw
material capability and broad product portfolio make it an ideal
partner to support our strong growth plans for 2008."
"As a result of close collaboration on qualifying on various
wireless related requirements, we are very pleased to have been
chosen as a major supplier to IQE," said Phil Yin, chairman and
chief executive officer. "This agreement recognizes our unique
capability to scale our manufacturing in order to meet the needs of
our customers and underscores our success in providing a
consistently high-quality product, backed by superior engineering
support and customer care."
About AXT, Inc.
AXT designs, develops, manufactures and distributes
high-performance compound and single element semiconductor
substrates comprising gallium arsenide (GaAs), indium phosphide
(InP) 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, and fiber optic communications. Its vertical
gradient freeze (VGF) technique for manufacturing semiconductor
substrates provides significant benefits over other methods and
enabled AXT to become a leading manufacturer of such substrates,
particularly in optoelectronics applications. AXT has manufacturing
facilities in China and invests in five joint ventures producing
raw materials. For more information, see AXT's website at
http://www.axt.com.
About IQE plc
IQE is the leading global supplier of advanced semiconductor
wafers with products that cover a diverse range of applications,
supported by an innovative outsourced foundry services portfolio
that allows the Group to provide a 'one stop shop' for the wafer
needs of the world's leading semiconductor manufacturers.
IQE uses advanced crystal growth technology (epitaxy) to
manufacture and supply bespoke semiconductor wafers ('epi-wafers')
to the major chip manufacturing companies, who then use these
wafers to make the chips which form the key components of virtually
all high technology systems. IQE is unique in being able to supply
wafers using all of the leading crystal growth technology
platforms.
IQE's products are found in many leading-edge consumer,
communication, computing and industrial applications, including a
complete range of wafer products for the wireless industry, such as
mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base
stations, GPS, and satellite communications; optical
communications, optical storage (CD, DVD), laser optical mouse,
laser printers & photocopiers, thermal imagers, leading-edge
medical products, barcode, high efficiency LEDs and a variety of
advanced silicon based systems.
The manufacturers of these chips are increasingly seeking to
outsource wafer production to specialist foundries such as IQE in
order to reduce overall wafer costs and accelerate time to
market.
IQE also provides bespoke R&D services to deliver customized
materials for specific applications and offers specialist technical
staff to manufacture to specification either at its own facilities
or on the customer's own sites. The Group is also able to leverage
its global purchasing volumes to reduce the cost of raw materials.
In this way IQE's outsourced services, provide compelling benefits
in terms of flexibility and predictability of cost, thereby
significantly reducing operating risk.
IQE operates six manufacturing facilities located in Cardiff
(two) and Milton Keynes in the UK; in Bethlehem, Pennsylvania and
Somerset, New Jersey in the USA; and Singapore. The Group also has
11 sales offices located in major economic centers worldwide.
Contacts: Wilson W. Cheung Chief Financial Officer (510)
683-5900 Leslie Green Green Communications Consulting, LLC (650)
312-9060
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