AXT Completes the Ramp of OSRAM Shipments from New, Dingxing Manufacturing Facility
December 03 2020 - 4:05PM
AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound
semiconductor substrates, today announced that it has completed the
ramp of its gallium arsenide substrate shipments for its major
customer, OSRAM, from its new, state-of-the-art manufacturing
facility in Dingxing, China. In March, OSRAM finished its
qualification of the new facility and began accepting a portion of
its order volume from Dingxing, which it has continued to ramp
throughout the year.
“We are very pleased to be able to fully support
OSRAM’s requirements from our new, world-class manufacturing
facility in Dingxing,” said Morris Young, chief executive officer.
“The facility was designed from the ground up around modern
manufacturing best practices, utilizing state-of-the-art equipment
and improved automation. It is also designed to efficiently scale
to significant capacity expansion requirements, as our customers
push the forefront of new, exciting, high-volume applications for
gallium arsenide substrates. We have greatly valued OSRAM’s
partnership through the process of our relocation and we are
excited to be able to support its growth across a breadth of
established and emerging photonics fields.”
Dingxing is approximately 75 miles
from Beijing. AXT began offering wafers from its new facility
for customer qualification in 2019, and began customer site
qualifications later that year. The relocation process was
prompted by the Beijing city government’s selection of
Tongzhou for its new municipal headquarters. Along with many other
businesses asked to relocate their manufacturing lines in order to
create room and upgrade the district, AXT was instructed to
relocate its gallium arsenide manufacturing line.
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 its sales,
administration and customer service functions. AXT has
manufacturing facilities in China and, as part of its
supply chain strategy, has partial ownership in ten companies in
China producing raw materials. 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 the market demand for
our products, our growth prospects and opportunities for continued
business expansion, our market opportunity, our relocation and our
expectations with respect to our business prospects and financial
results. 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 timing and receipt of significant orders;
the cancellation of orders and return of product; emerging
applications using chips or devices fabricated on our substrates;
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; the relocation of manufacturing lines and ramping of
production; possible factory shutdowns as a result of air pollution
in China; COVID-19 or other outbreaks of a contagious disease;
tariffs and other trade war issues; the financial performance of
our partially owned supply chain companies; 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 FischerChief Financial Officer(510)
438-4700
Leslie
Green Green
Communications Consulting, LLC(650) 312-9060
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