PartnershipJul 2, 2026, 05:07 PM
AXT Secures $22.3M Prepayment for InP Wafer Supply to Coherent
AI Summary
AXT-Tongmei, a subsidiary of AXT, Inc., has entered into a Master Development and Supply Agreement with Coherent Corp. The agreement, effective June 25, 2026, establishes terms for the mass development and supply of 6-inch indium phosphide wafer substrates for an initial three-year term. Coherent will provide a $22,288,500 prepayment to AXT, which will increase its manufacturing capacity at its Beijing facility from 2026 through 2028 to meet committed product capacity. The prepayment is refundable under specific conditions but becomes nonrefundable if Coherent fails to meet its minimum order quantity requirements.
Key Highlights
- AXT-Tongmei entered a Master Development and Supply Agreement with Coherent Corp.
- The agreement is for 6-inch indium phosphide (InP) wafer substrates, effective June 25, 2026.
- The initial term of the agreement is three years.
- Coherent will provide a prepayment of $22,288,500 to AXT.
- AXT commits to increasing manufacturing capacity at its Beijing facility from 2026 through 2028.
- The prepayment is refundable under certain conditions, including AXT failing capacity commitment.
- The prepayment becomes nonrefundable if Coherent fails to meet its minimum order quantity.
Price Impact
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