AXT, Inc. Subsidiary Enters Long-term Supply Agreement for InP Wafer Substrates

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The agreement commits Casela to purchase a fixed aggregate quantity of indium phosphide wafer substrates from Tongmei for a total price of approximately US$25.4 million during 2027. Casela is required to make a 50% prepayment within 15 business days of the agreement's entry into force, with the remaining 50% due by December 31, 2026. The agreement includes provisions for prioritizing Casela's demand and consequences for fundamental breaches, such as termination and forfeiture of payments.

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About Axt, Inc.

Axt, Inc. is a leading producer of high-performance compound semiconductor substrates. These substrates, such as gallium arsenide (GaAs), enable the efficient functioning of a diverse range of electronic and optoelectronic devices. Axt, Inc. plays a crucial role in enhancing the performance of high-frequency, high-power, and optically sensitive applications. The primary use of these substrates is found in industries like telecommunications, light-emitting diodes (LEDs), and solar cells. With its production facilities located primarily in China, Axt, Inc. serves a global market, catering to technology companies that require high-quality semiconductor materials. Through its extensive research and development initiatives, the company continually innovates to meet the growing demand for substrate materials that support advanced technology products. As a significant provider in the semiconductor supply chain, Axt, Inc. contributes to the advancement of next-generation technologies, supporting sectors that are critical to modern electronics and renewable energy solutions.