PartnershipJul 29, 2026, 04:23 PM
AXT Secures $87M Indium Phosphide Supply Deal with Lumentum
AI Summary
AXT Inc. has entered into a six-year Capacity Reservation Agreement with Lumentum Operations LLC for the supply and capacity reservation of indium phosphide wafer substrates. Under the terms, Lumentum will provide an initial deposit of $43.5 million within 30 business days, followed by a second deposit of $43.5 million in 2028, totaling $87 million. These deposits will serve as shipment credits towards Lumentum's minimum annual purchase commitments, securing AXT as a key supplier for Lumentum's indium phosphide requirements.
Key Highlights
- AXT Inc. entered into a six-year Capacity Reservation Agreement with Lumentum Operations LLC.
- The agreement is for the supply and capacity reservation of indium phosphide wafer substrates.
- Lumentum will pay an initial deposit of $43,500,000 within 30 business days.
- A second deposit of $43,500,000 is due in calendar year 2028.
- Total deposits amount to $87,000,000, which will be applied as shipment credits.
- The agreement runs through December 31, 2031, and is renewable for additional one-year periods.
Price Impact
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