AXT, Inc. Addresses China’s Announcement of New Export Control Regulations
July 03 2023 - 8:40PM
AXT, Inc. (Nasdaq: AXTI), a worldwide materials science company,
today addressed the potential impact of the announcement of China’s
new export control regulations on gallium- and germanium-related
materials, which take effect on August 1, 2023.
Tongmei, AXT’s subsidiary in China, expects to
proceed to immediately seek permits from the applicable Chinese
authorities to export gallium and germanium substrate products.
Indium phosphide substrates are not included in the new export
control regulations, and, therefore, exports of indium phosphide
will not require export approvals as part of these regulations.
In the first quarter of 2023, gallium arsenide
and germanium substrates exported outside of China contributed
approximately $4.3 million in revenue, primarily for consumer,
automotive, display, and industrial applications.
“We are actively pursuing the necessary permits
and are working to minimize any potential disruption to our
customers,” said Morris Young, chief executive officer.
The company also announced that it will report
earnings for the second quarter of 2023 on Aug. 3, 2023
aftermarket. Details of the call will be forthcoming.
About AXT, Inc. AXT is a
worldwide materials science company. Tongmei, its primary
subsidiary in China, 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. AXT’s
worldwide headquarters are in Fremont, California where
the company maintains sales, administration and customer service
functions. AXT’s Asia headquarters and development team are
located in Beijing, China and the company has
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.
Safe Harbor The foregoing
paragraphs contain forward-looking statements within the meaning of
the Federal securities laws, including, for example, statements
regarding obtaining from the applicable authorities the necessary
permits to export gallium arsenide and germanium substrate
products. Additional examples of forward-looking statements include
statements regarding our efforts to minimize any disruption to our
customers. 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 administrative challenges in applying for
and obtaining the necessary permits. Additional uncertainties and
factors include, but are not limited to, 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
L. Fischer
Chief
Financial Officer
(510)
438-4700
Leslie
Green
Green
Communications Consulting, LLC
(650)
312-9060
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