What AXT Inc does

AXT, Inc. is a publicly traded material science company (NASDAQ: AXTI) founded in 1986 and headquartered in Fremont, California. The company designs, develops, manufactures, and distributes high-performance compound and single element semiconductor wafer substrates, specifically indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge), which are used when silicon substrates cannot meet the performance requirements of advanced semiconductor or optoelectronic devices. Manufacturing is conducted primarily through its wholly-owned China subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., which operates three manufacturing sites in China and is pursuing a separate listing on the Shanghai Stock Exchange's STAR Market. AXT, Tongmei, and Tongmei subsidiaries also hold partial ownership in over ten raw material producers in China, providing vertical integration into indium, gallium, and germanium feedstocks.

The company sells directly to semiconductor and optoelectronic device manufacturers, including Tier-1 companies, with primary end markets in AI data center connectivity (optical transceivers and silicon photonics for 1.6T interconnects), 5G telecom infrastructure, consumer devices (LEDs, lasers, sensors), and industrial/automotive applications (LiDAR, satellite solar cells). Key technical differentiators include low etch pit density specifications and the development of 6-inch InP substrates for next-generation AI data centers. Pricing is negotiated on a quote basis and is not publicly disclosed, though 6-inch InP wafer prices reportedly surged to approximately $5,000 in 2025 amid supply constraints. The company employs 1,001-5,000 people, generated $88.3 million in FY2025 revenue, and reported Q1 2026 revenue of $26.9 million, up 39% year-over-year, with an InP backlog exceeding $100 million.

Name

AXT Inc

Legal name

AXT, Inc.

Website

https://investors.axt.com

Company type

Public

Founded year

1986

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

AXT, Inc. designs, develops, manufactures, and distributes high-performance compound semiconductor substrates (indium phosphide, gallium arsenide, germanium) used in AI data center connectivity, 5G infrastructure, and optoelectronic devices, primarily through its China-based manufacturing subsidiary Beijing Tongmei Xtal Technology.

Ownership category

akta.pro rank

Product category

Compound Semiconductor Substrates

NAICS

Semiconductor and Related Device Manufacturing (334413), Semiconductor and Other Electronic Component Manufacturing (33441)

SIC

Semiconductors & Related Devices (3674)

akta.pro primary industry

Compound Semiconductor Wafers & Substrates (SiC/GaN/GaAs/InP/Sapphire) (HDAHAGAB)

akta.pro secondary industry

Optoelectronic / Photonics Foundries (Silicon Photonics/LED/Laser) (HDAHACAG)

Keywords

• Compound semiconductor substrates
• Indium phosphide wafers
• Gallium arsenide substrates
• Germanium semiconductor wafers
• Optoelectronic wafer manufacturing

Headquarters

HQ city

Fremont

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Semiconductor Substrate Sales: AXT generates revenue by developing, manufacturing, and distributing high-performance compound and single element semiconductor substrate wafers. Revenue is derived from the sale of indium phosphide, gallium arsenide, and germanium substrates to semiconductor and optoelectronic device manufacturers.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels3 records

Core offering

AXT, Inc. designs, develops, manufactures and distributes high-performance compound and single-element semiconductor wafer substrates—indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge)—that are used when typical silicon wafer substrates cannot meet the performance requirements of semiconductor or optoelectronic devices. Manufacturing is conducted primarily through its Beijing-based subsidiary Beijing Tongmei Xtal Technology Co., Ltd. (Tongmei) for global export to device makers serving AI data centers, 5G/telecom, consumer electronics, industrial lasers, automotive, wireless, and IoT applications.

Product overview

AXT Inc is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers. The company's product portfolio consists of three core substrate types: Indium Phosphide (InP) substrates, Gallium Arsenide (GaAs) substrates, and Germanium (Ge) substrates. These substrates are used when typical silicon wafer substrates cannot meet the performance requirements of semiconductor or optoelectronic devices. The substrates serve diverse end markets including AI/data center connectivity, 5G infrastructure, consumer devices, industrial lasers, automotive, wireless, and IoT applications. AXT operates with worldwide headquarters in Fremont, California and has manufacturing facilities in Beijing, China through its subsidiary Beijing Tongmei Xtal Technology Co., Ltd.

Differentiator

Problem solved

Functional benefit

Products and services

• Indium Phosphide (InP) Substrates High-performance compound semiconductor wafer substrates made from indium phosphide, used when silicon cannot meet performance requirements for AI data center optical interconnects, 1.6T communications, 5G infrastructure, and silicon photonics devices. Sold to semiconductor and optoelectronic device manufacturers.
• Gallium Arsenide (GaAs) Substrates High-performance compound semiconductor wafer substrates made from gallium arsenide, used in LED lighting, lasers, sensors, power amplifiers for wireless devices, and satellite solar cells when silicon cannot meet performance requirements. Sold to device manufacturers across consumer electronics, telecom, and industrial markets.
• Germanium (Ge) Substrates Single element semiconductor wafer substrates made from germanium, used in applications where silicon substrates cannot meet performance specifications for optoelectronic and semiconductor devices. Sold to device manufacturers across solar, sensor, and specialty electronics applications.

Quantifiable outcome

• Record InP backlog exceeding $100 million as of early 2026
• +2 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Two partnerships are on record, tiered core and supporting.

• Beijing Tongmei Xtal Technology Co., Ltd.coreStrategic or Co-development Partner · 30 December 2025AXT's primary subsidiary in Beijing, China, responsible for manufacturing indium phosphide substrates and R&D for 6-inch InP substrates. Tongmei is seeking to list on the Shanghai STAR Market. AXT maintains operational control while Tongmei handles manufacturing and serves as the Asia headquarters with manufacturing facilities in three locations.
• Raw Material Suppliers in ChinasupportingStrategic or Co-development PartnerAXT has partial ownership in over ten companies in China that produce raw materials for its manufacturing process. This vertical integration provides supply chain control and cost efficiency for critical inputs.

Scale indicators7 records

Recent moves10 records

Expansion highlights6 records

Direct peers

• IQE plc: IQE is the world's largest independent compound semiconductor epitaxial wafer foundry, producing GaAs and InP epiwafers for RF, photonics, and sensor applications. While it operates a different step in the value chain (epitaxy vs. bulk substrates), it serves substantially the same customer base and end markets as AXT.
• IntelliEPI: IntelliEPI is a Texas-based pure-play GaAs epitaxial wafer manufacturer serving RF, photonics, and LED customers. It is a direct competitor in the compound semiconductor wafer market serving overlapping Tier-1 device manufacturers with AXT.
• Freiberger Compound Materials: Freiberger is a German-based leading producer of GaAs and InP compound semiconductor substrates, supplying the global optoelectronics and RF industry. It is one of AXT's principal competitors in merchant InP and GaAs wafer supply for telecom and data center applications.
• Sumitomo Electric Industries: Sumitomo Electric is a Japanese diversified manufacturer with a compound semiconductor substrate business producing InP and GaAs wafers. It is one of the most direct competitors to AXT in the global InP substrate market and a key beneficiary of the same AI optical interconnect demand wave.
• Mitsubishi Chemical Group: Mitsubishi Chemical produces GaAs substrates through its compound semiconductor materials business (formerly Hitachi Cable). It directly competes with AXT in GaAs substrates serving LEDs, lasers, and wireless applications across Asia and globally.
• Yunnan Lincang Xinyuan Germanium Industry: Yunnan Xinyuan is one of China's largest germanium producers and substrate manufacturers. It is a direct peer to AXT's germanium substrate business and a key supplier in the global Ge wafer market for solar cells, infrared optics, and advanced semiconductor applications.

Broad incumbents

• Coherent Corp (formerly II-VI): Coherent is a large US-based photonics and compound semiconductor materials company with broad portfolios across laser optics, InP/GaAs devices, and SiC substrates. While not a pure substrate peer, it overlaps materially with AXT in compound semiconductor materials serving AI datacom and telecom end markets.

Regional players

• Visual Photonics Epitaxial Co. (VPEC): VPEC is Taiwan's largest independent GaAs and InP epitaxial wafer foundry. It is a regional competitor serving Asia-based device makers for wireless, photonics, and optoelectronics with substantial overlap to AXT's customer set.
• China Crystal Technologies (CCTC): China Crystal Technologies is a China-based compound semiconductor substrate manufacturer producing InP and GaAs wafers. It is a domestic Chinese competitor to AXT's Tongmei subsidiary and a relevant comparison given the China supply concentration dynamics affecting the broader market.

Emerging players

• Lumentum Holdings: Lumentum is a leading supplier of InP-based photonic devices and transceivers, making it both a major customer for AXT's InP substrates and a strategic adjacent player in AI data center optical interconnects. Its vertical integration considerations make it a key comparable for evaluating AXT's substrate business.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/axt-inc.

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds2 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about AXT Inc