AXT Inc

The grade, in three tenses

Headline 3.1 out of ten, 8 of 9 metrics filed and 1 estimated: past 2.7 out of ten, present 3.8 out of ten, future 2.5 out of ten. The past asks what it actually did, the present what it is doing right now, the future what it is set up to do next.

The nine metrics

• Surviving crises (past): 0.3 out of ten. 4 warning events since 2017; the latest 2026-07-08. 4th percentile among 99 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Track record (past): 3.5 out of ten. +0.9% a year over 10 filed years; profitable in 6 of 10. 35th percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Shareholder treatment (past): 4.6 out of ten. CrossAssetData estimate 4.6/10, confidence 35 of 100 (one part). 46th percentile among 94 sector filers. A CrossAssetData estimate, not a filed reading: one part, confidence 35 of 100; a filing that carries the missing parts replaces this estimate with the filed reading.
• Financial health (present): 3.5 out of ten. ROE -7%: lost 7¢ per shareholder dollar. Leverage 32%: owes 32¢ per asset dollar. 35th percentile among 95 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Industry position (present): 2.3 out of ten. bottom 23% of 97 in its family; net margin -24.1%. 23rd percentile among 97 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Leadership (present): 6.9 out of ten. top 31% of 66 in its family for leadership; chief executive since 2014. 69th percentile among 66 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-09).
• Room to expand (future): 3.7 out of ten. bottom 37% of 94 in its family for room to expand. 37th percentile among 94 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Growth drivers (future): 1.3 out of ten. bottom 12% of 93 in its family for growth drivers. 12th percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Expectations vs reality (future): 2.0 out of ten. bottom 20% of 88 in its family for expectations against reality. 20th percentile among 88 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).

The filing record

Newest annual report: Form 10-K filed 2026-03-17 for the period ended 2025-12-31 (on EDGAR). Newest quarterly report: Form 10-Q filed 2026-08-13 for the period ended 2026-06-30 (on EDGAR). Newest results release: Form 8-K filed 2026-07-30 (on EDGAR). Newest filing: Form SCHEDULE 13G/A, 2026-10-05. Filings on record since 1998. Read from EDGAR 2026-10-12.

How the company works

Read from its Form 10-K filed 2026-03-17.

The people

Morris S. Young co-founded AXT in 1986 and runs it today as chairman and chief executive. He was chief executive from 1989 to May 2004, then chief technology officer until he retired in 2006, and was brought back as chief executive on July 16, 2009; he has chaired the board again since August 12, 2021. Before AXT he was a physicist at Lawrence Livermore National Laboratory from 1985 to 1989, and he holds a doctorate in metallurgy. The 2026 proxy statement gives his age as 81. [1, 2, 3]

The only other executive officer is Gary L. Fischer, chief financial officer and corporate secretary since August 2014. He had been finance chief of eRide, a GPS chip designer, from 2005 until it was acquired in 2009, and before that spent 1993 to 2005 at Integrated Silicon Solution, rising to president and chief operating officer. The board has four members: Young; Jesse Chen, a director since February 1998 and the lead independent director, who chaired the board until August 2021; David C. Chang, a director since December 2000, who was president of Polytechnic University in New York from 1994 to 2005; and Leonard J. LeBlanc, back on the board since July 2025 after serving from 2003 to 2021, a former chief financial officer of Cadence Design Systems. [4, 5, 6, 7, 8, 9, 10, 11]

At the end of 2025 AXT and Tongmei, its Chinese operating company, had 1,072 employees: 23 at headquarters in Fremont, California, one salesperson in France and 1,048 in its factories in China. Counting the 469 people at its consolidated raw-material companies, the group had 1,541: 1,137 in manufacturing, 188 in sales and administration and 216 in research and development, with 1,517 of them in China. Most of the employees in China, 1,383 people, are represented by unions; the company says it has never had a work stoppage. [12, 13, 14, 15]

How it operates

AXT makes wafers, the thin discs chips are built on, from materials other than silicon, for jobs where a silicon wafer would run too hot or too slow or cannot make light. Its compound wafers are indium phosphide (InP), used in fiber optics and in the lasers that move data inside data centers, and gallium arsenide (GaAs), used for phone power amplifiers, LEDs and industrial lasers; its single-element wafers are germanium (Ge), used mainly for solar cells in space. It does not design or make chips. Its second product line is raw materials, such as purified gallium and pBN crucibles, the pyrolytic boron nitride vessels crystals are grown in, which it uses itself and also sells to others. In 2025 wafers brought in 67% of revenue and raw materials 33%. [16, 17, 18, 19, 20, 21, 22, 23]

Its customers are mostly epitaxial layer companies, which grow thin chemical layers on the wafers and sell them on to chip fabs, chip designers and LED makers, in Asia, the United States and Europe, plus universities and research labs. Many need custom specifications, and most qualify at least two wafer suppliers. No customer took more than 10% of revenue in 2025, 2024 or 2023; the five largest, not the same five each year, took 29% in 2025, and three customers of the raw-material companies took 25% of raw-material sales. It sells wafers through its own sales force in the United States, China and Europe and through representatives and distributors in Japan, Taiwan and Korea. [24, 25, 26, 27, 28, 29, 30]

Almost all of its sales are now outside North America: 98% of revenue in 2025, against 92% in 2024 and 90% in 2023. By where customers are, China took 62% of 2025 revenue, Taiwan 15%, Europe, mainly Germany, 13%, Japan 5% and the rest of Asia 3%; North America took 2%, down from 8% the year before. [31, 32, 33, 34, 35, 36, 37]

Everything is made in China, as it has been since 2004, by its Chinese subsidiaries and joint ventures. Tongmei grows the crystals in furnaces of its own design. Its indium phosphide line remains at its original site in Beijing; the city told it to move its gallium arsenide lines out of the Tongzhou district, and it also moved part of its germanium line, and it owns production plants in Dingxing and Kazuo. Together with its subsidiaries it holds stakes in more than ten Chinese raw-material companies, which it calls the backbone of its supply chain. It relies on one or a few suppliers for quartz tubing, arsenic, phosphorus and polishing solutions, bought on purchase orders rather than long-term contracts. [38, 39, 40, 41, 42, 43, 44, 45]

The specifics

Tongmei grows single crystals by vertical gradient freeze (VGF), its own method, then slices the ingots into wafers. Growing indium phosphide takes extreme pressure as well as tight temperature control, and the company keeps much of that know-how as trade secrets. It claims its InP wafers are best in class, with the lowest defect densities on the market, and says there are only three primary suppliers of InP wafers, AXT among them. It holds 198 patents on its VGF products and processes, 153 of them in China and 22 in the United States, and its raw-material companies hold 130 more in China. In 2015 it bought wafer processing equipment from Hitachi Metals with a license to Hitachi Metals' wafer processing technology. [46, 47, 48, 49, 50, 51, 52]

It names its main rivals as Sumitomo Electric Industries, JX (Japan Energy), Freiberger Compound Materials, Umicore, China Crystal Technology and Vital Materials, and says its primary competitors make their products mainly in Germany or Japan. Once a wafer supplier is qualified with a customer, price, consistent quality and delivery times decide. Other materials compete too: silicon-on-insulator displaced gallium arsenide chips in phones' radio-frequency switches from 2012 to 2015. [53, 54, 55, 56]

Trade rules between China and the United States now govern where it can sell. China has required export permits for gallium arsenide and germanium wafers since August 1, 2023, and added indium phosphide wafers to its control list on February 4, 2025, so all three of Tongmei's wafer families need permits from China's Ministry of Commerce. Tongmei received its first InP permits on June 11, 2025, for certain customers in Europe and Japan. No permit to export gallium arsenide to the United States has been approved, because its customers there also do military work. On the American side, tariffs on its wafers from China rose from 25% to 50% in January 2025, to 60% in February and to 70% on March 4, 2025. [57, 58, 59, 60, 61, 62]

AXT began as American Xtal Technology, incorporated in California in December 1986; it went public and moved its incorporation to Delaware in 1998 and took its present name in July 2000. It is based in Fremont, California. It founded Tongmei in 1998 and since 2020 has worked to list Tongmei on Shanghai's STAR Market: private equity investors paid about 49 million dollars for a 7.28% stake and may demand their money back if the listing fails. The Shanghai Stock Exchange approved the application in July 2022; it still awaits approval by the China Securities Regulatory Commission. In December 2025 AXT raised gross proceeds of about 100 million dollars in an offering on Nasdaq. A shareholder class action filed in May 2024 against the company and its two officers is pending. [63, 64, 65, 66, 67, 68, 69, 70, 71]

What drives growth, line by line

Revenue fell 11.1% in 2025 to 88.3 million dollars, from 99.4 million, after rising 31.1% in 2024; it had been 141.1 million in 2022. Gross margin fell to 12.7% from 24.0%, which the filing puts down to lower revenue spreading fixed costs over fewer units and to manufacturing variances, mainly in the first half of the year. [72, 73, 74]

Substrates. Wafers brought in 67% of 2025 revenue and fell 13.1%, a decrease of 8.8 million dollars. The company deliberately sold fewer germanium wafers because the raw materials for them rose sharply in cost while prices stayed competitive. Demand for InP wafers rose, but InP revenue fell because of China's permit requirement of February 4, 2025; gallium arsenide revenue slipped slightly. [23, 75, 76, 77]

Raw materials and other. 33% of revenue, down 6.9%, a decrease of 2.2 million dollars: less purified gallium sold, partly offset by more pBN crucibles and pBN-based tools for making OLED screens sold by BoYu, one of its raw-material companies. The partly owned raw-material companies it does not consolidate earned it 0.8 million dollars, down from 3.4 million, which the filing puts down to China's export restrictions on gallium and to price cuts by Chinese gallium suppliers competing at home. [23, 75, 78, 79]

By region, the permits did the most visible damage. Revenue from North America fell 77.5% and from Taiwan 7.5%, both mainly because of the InP permit requirement. Europe fell 19.0% on weaker demand for gallium arsenide wafers for LEDs and wireless, for germanium wafers and for pBN crucibles, while China slipped 1.9% as the company cut germanium sales, offset in part by more InP. [80, 81, 82, 83]

What comes next, in the company's own words: it has set a goal of doubling its indium phosphide capacity by the end of 2026 and is focusing further on 6-inch InP wafers, and its 8-inch gallium arsenide wafers are shipping in small quantities. It reports that revenue in the second half of 2025 was 27% higher than in the first, after the first InP permits arrived; it believes AI is raising the need for fast data transfer that InP serves; and Tongmei hopes to complete its STAR Market listing in the coming months. [84, 85, 86, 87, 88, 89]

What the desk infers (inferred, not filed)

• AXT's largest single dependency is not a customer but the Chinese government: with every wafer made in China and no customer above a tenth of revenue, export permit decisions in Beijing, more than orders, set how much it can sell abroad. Because: All of its products are made in China, and all three of its wafer families now need permits from China's Ministry of Commerce to leave the country. [38, 58] No customer took more than 10% of revenue in 2025, 2024 or 2023. [26] Demand for InP wafers rose in 2025, yet InP revenue fell because of the permit requirement. [77] Revenue from North America fell 77.5% and from Taiwan 7.5%, mainly because of the InP permit requirement, and no permit to ship gallium arsenide to the United States has been approved. [80, 82, 60] Confidence 80 of 100. Wrong if: A year in which export permits are granted routinely and revenue outside China still falls, on customer orders rather than permits.
• Owning stakes in its raw-material suppliers secures AXT's supply but does not protect its costs: when germanium's inputs rose sharply in 2025 it chose to sell fewer germanium wafers rather than absorb the cost. Because: It says its raw-material companies give it pricing advantages, reliable supply and shorter lead times, and germanium and germanium dioxide are among what they make. [39, 90] The raw materials needed for germanium wafers rose substantially in cost in 2025 while pricing stayed competitive, so it deliberately cut those sales. [76] Its partly owned raw-material companies sell the output it does not buy to third parties. [91] Confidence 60 of 100. Wrong if: A filing showing that its own raw-material companies supplied germanium to it below what outside buyers paid in 2025, or that the germanium cut came from lost customers rather than its own choice.
• Indium phosphide for data-center optics has become the product the company is organized around: the demand, the new capital and the capacity plans all point to it, even though permits now cap what it can ship. Because: Demand for InP wafers rose in 2025 while germanium and gallium arsenide wafer sales fell. [77] It raised gross proceeds of about 100 million dollars in December 2025 and set a goal of doubling InP capacity by the end of 2026. [68, 84] It calls its InP wafers best in class and one of only three primary sources. [48, 49] It ties InP demand to data centers and AI. [88] Confidence 70 of 100. Wrong if: A filing showing that the capacity added in 2026 went mainly to gallium arsenide or germanium lines rather than indium phosphide.

Sources

1. AXT Inc, Form DEF 14A filed 2026-03-31: “Morris S. Young, Ph.D. co-founded AXT in 1986 and has served as a director since 1989. Dr. Young served as our Chairman of the Board of Directors from February 1998 to May 2004 and as our president and chief executive officer from 1989 to May 2004. From 2004 until his retirement in 2006, Dr. Young served as our chief technology officer.”
2. AXT Inc, Form DEF 14A filed 2026-03-31: “He was reappointed as our chief executive officer on July 16, 2009 and Chairman of the Board of Directors on August 12, 2021. From 1985 to 1989, Dr. Young was a physicist at Lawrence Livermore National Laboratory. Dr. Young has a B.S. degree in metallurgical engineering from National Cheng Kung University, Taiwan, a M.S. degree in metallurgy from Syracuse University, and a Ph.D. in metallurgy from Polytechnic University.”
3. AXT Inc, Form DEF 14A filed 2026-03-31: “Morris S. Young Chairman of the Board, Chief Executive Officer 81 1989”
4. AXT Inc, Form DEF 14A filed 2026-03-31: “Gary L. Fischer was appointed as our Vice President, Chief Financial Officer and Corporate Secretary in August 2014.”
5. AXT Inc, Form DEF 14A filed 2026-03-31: “Mr. Fischer served as a consultant to eRide, Inc., a fabless semiconductor company that develops both GPS devices and software for location-based services, since 2009. Prior to that position, Mr. Fischer served as Vice President and Chief Financial Officer of eRide from 2005 until 2009, when eRide was acquired. From 1993 to 2005, Mr. Fischer held various positions at Integrated Silicon Solution, Inc., a leader in advanced memory solutions, most recently as President and Chief Operating Officer.”
6. AXT Inc, Form DEF 14A filed 2026-03-31: “The following sets forth information regarding our current non-director executive officers.”
7. AXT Inc, Form DEF 14A filed 2026-03-31: “We have a classified Board of Directors consisting of two Class I directors, one Class II director and one Class III director”
8. AXT Inc, Form DEF 14A filed 2026-03-31: “Jesse Chen has served as one of our directors since February 1998 and was our Chairman of the Board of Directors from May 2004 until October 2007, at which time he was appointed our lead independent director. Mr. Chen served as our Chairman of the Board of Directors from March 2009 until August 12, 2021.”
9. AXT Inc, Form DEF 14A filed 2026-03-31: “David C. Chang, Ph.D. has served as one of our directors since December 2000.”
10. AXT Inc, Form DEF 14A filed 2026-03-31: “Dr. Chang has served as president of Polytechnic University in New York (now known as the Tandon School of Engineering, New York University) from 1994 to 2005 and chancellor from 2005 to 2013”
11. AXT Inc, Form DEF 14A filed 2026-03-31: “Leonard J. LeBlanc prior to joining as one of our directors in July 2025, Mr. LeBlanc previously served as a director for AXT, Inc. from April 2003 to December 2021 and was also a director emeritus in 2022.”
12. AXT Inc, Form 10-K filed 2026-03-17: “As of December 31, 2025, AXT and Tongmei had 1,072 employees, which consisted of 23 employees in our headquarters in Fremont, California, one sales professional in France and 1,048 employees in our factories in China.”
13. AXT Inc, Form 10-K filed 2026-03-17: “In addition, our consolidated raw material companies had, in total, 469 employees. In aggregate, we and our consolidated raw material companies had 1,541 employees, of whom 1,137 were principally engaged in manufacturing, 188 in sales and administration and 216 in research and development.”
14. AXT Inc, Form 10-K filed 2026-03-17: “Of these 1,541 employees, 23, consisting of sales and marketing, accounting and finance, administration and corporate executives were located in the United States, one in France and 1,517 in China.”
15. AXT Inc, Form 10-K filed 2026-03-17: “As of December 31, 2025, 1,383 employees in China, including employees of our consolidated raw material companies, were represented by unions. We have never experienced a work stoppage and we consider our relations with our employees to be good.”
16. AXT Inc, Form 10-K filed 2026-03-17: “However, certain chips may become too hot or perform their function too slowly if silicon is used as the base material. In addition, optoelectronic applications, such as LED lighting and chip-based lasers, do not use silicon substrates because they require a waveform frequency that cannot be achieved using silicon.”
17. AXT Inc, Form 10-K filed 2026-03-17: “We do not design or manufacture the chips. We add value by researching, developing and producing the specialty material wafers.”
18. AXT Inc, Form 10-K filed 2026-03-17: “Our compound substrates combine indium with phosphorous (indium phosphide: InP) or gallium with arsenic (gallium arsenide: GaAs). Our single element substrates are made from germanium (Ge).”
19. AXT Inc, Form 10-K filed 2026-03-17: “InP is a high-performance semiconductor wafer substrate used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Data centers use InP devices for high-speed optical data transmission.”
20. AXT Inc, Form 10-K filed 2026-03-17: “Semi-insulating GaAs substrates are used to create various high-speed microwave components, including power amplifier chips used in cell phones, satellite communications and broadcast television applications. Semi-conducting GaAs substrates are used to create opto-electronic products, such as light emitting diodes (LEDs)”
21. AXT Inc, Form 10-K filed 2026-03-17: “Semi-conducting GaAs substrates are also used in making industrial lasers.”
22. AXT Inc, Form 10-K filed 2026-03-17: “Ge substrates are used in applications such as solar cells for space and terrestrial photovoltaic applications.”
23. AXT Inc, Form 10-K filed 2026-03-17: “Our substrate product group generated 67%, 68%, and 63% of our consolidated revenue and our raw materials product group generated 33%, 32%, and 37% for 2025, 2024, and 2023, respectively.”
24. AXT Inc, Form 10-K filed 2026-03-17: “We sell our substrates to companies that apply the epitaxial layer, who then in turn sell the modified wafers to the wafer fabs, chip design companies, LED manufacturers and others.”
25. AXT Inc, Form 10-K filed 2026-03-17: “Epitaxial layer companies that form our customer base are located in Asia, the United States and Europe. We also sell our products to universities and other research organizations”
26. AXT Inc, Form 10-K filed 2026-03-17: “No customer represented more than 10% of our revenue for the years ended December 31, 2025, 2024 and 2023. Our top five customers, although not the same five customers for each period, represented 29% of our revenue for the year 2025, 30% of our revenue for 2024 and 25% of our revenue for 2023.”
27. AXT Inc, Form 10-K filed 2026-03-17: “For the year ended December 31, 2025, three customers of our consolidated subsidiaries, in aggregate, accounted for 25% of raw material sales.”
28. AXT Inc, Form 10-K filed 2026-03-17: “We sell our substrate products directly to customers through our direct salesforce in the United States, China and Europe. We also use independent sales representatives and distributors in Japan, Taiwan, Korea and other areas.”
29. AXT Inc, Form 10-K filed 2026-03-17: “Many of our customers require customized specifications, such as special levels of iron or sulfur dopants or a special wafer thickness.”
30. AXT Inc, Form 10-K filed 2026-03-17: “Typically, our customer or prospective customer has at least two qualified substrate suppliers.”
31. AXT Inc, Form 10-K filed 2026-03-17: “Sales to customers located outside of North America represented approximately 98%, 92% and 90% of our revenue during 2025, 2024 and 2023, respectively.”
32. AXT Inc, Form 10-K filed 2026-03-17: “China $ 55,076 $ 56,119 $ 39,778 $ (1,043 ) (1.9 )% $ 16,341 41.1 % % of total revenue 62 % 56 % 53”
33. AXT Inc, Form 10-K filed 2026-03-17: “Taiwan 13,039 14,098 8,651 (1,059 ) (7.5 )% 5,447 63.0 % % of total revenue 15 % 14 % 11”
34. AXT Inc, Form 10-K filed 2026-03-17: “Japan 4,906 4,979 4,641 (73 ) (1.5 )% 338 7.3 % % of total revenue 5 % 5 % 6”
35. AXT Inc, Form 10-K filed 2026-03-17: “Asia Pacific (excluding China, Taiwan and Japan) 2,441 2,818 3,814 (377 ) (13.4 )% (996 ) (26.1 )% % of total revenue 3 % 3 % 5”
36. AXT Inc, Form 10-K filed 2026-03-17: “Europe (primarily Germany) 11,156 13,766 12,315 (2,610 ) (19.0 )% 1,451 11.8 % % of total revenue 13 % 14 % 16”
37. AXT Inc, Form 10-K filed 2026-03-17: “In 2024, 8% of our total worldwide revenue was from sales in North America, primarily in the U.S.; however, in 2025, only approximately 2% of our revenue was generated by sales to customers in North America.”
38. AXT Inc, Form 10-K filed 2026-03-17: “Since 2004, we have manufactured all of our products in China, which generally has favorable costs for facilities and labor compared to costs of comparable facilities and labor in the United States, Japan or Europe.”
39. AXT Inc, Form 10-K filed 2026-03-17: “All of our substrate products and raw material products are manufactured in the People’s Republic of China (PRC or China) by our PRC subsidiaries and PRC joint ventures. The PRC generally has favorable costs for facilities and labor compared with comparable facilities in the United States, Europe or Japan. Our supply chain includes partial ownership of raw material companies in China (subsidiaries/joint ventures). We believe this supply chain arrangement provides us with pricing advantages, reliable supply, market trend visibility and better sourcing lead-times for key raw materials central to manufacturing our substrates.”
40. AXT Inc, Form 10-K filed 2026-03-17: “The growth process occurs in high temperature furnaces built using Tongmei proprietary designs.”
41. AXT Inc, Form 10-K filed 2026-03-17: “We were instructed to relocate our gallium arsenide manufacturing lines. For reasons of manufacturing efficiency, we elected to also move part of our germanium manufacturing line. Our indium phosphide manufacturing line, as well as various administrative and sales functions, remain primarily at our original site, in Beijing.”
42. AXT Inc, Form 10-K filed 2026-03-17: “In 2015, the Beijing city government announced its decision to move most of its offices to the Tongzhou district where our original manufacturing facility is currently located.”
43. AXT Inc, Form 10-K filed 2026-03-17: “DingXing, China 193,621 Production Owned by AXT / Tongmei Kazuo, China 528,390 Production Owned by AXT / Tongmei”
44. AXT Inc, Form 10-K filed 2026-03-17: “Together with certain subsidiaries we have partial ownership in over ten raw material companies in China that form the backbone of our supply chain model.”
45. AXT Inc, Form 10-K filed 2026-03-17: “We depend on a single or limited number of suppliers for certain critical materials used in the production of our substrates, such as quartz tubing, arsenic, phosphorus and polishing solutions. We generally purchase our materials through standard purchase orders and not pursuant to long-term supply contracts.”
46. AXT Inc, Form 10-K filed 2026-03-17: “Tongmei uses its proprietary vertical gradient freeze (VGF) technology for growing single crystal Indium Phosphide (InP), Gallium Arsenide (GaAs) and Germanium (Ge) ingots. After growing the crystalline ingot, the ingot is then sliced into individual substrates or wafers.”
47. AXT Inc, Form 10-K filed 2026-03-17: “InP crystal growth relies on extreme pressure within the crucible. As such it requires not only temperature control methodologies, but also pressure control and stabilization process methodologies, many of which we consider proprietary trade secrets.”
48. AXT Inc, Form 10-K filed 2026-03-17: “We believe our InP substrates have the lowest defect densities and lowest stress and slip lines on the market and are best in class.”
49. AXT Inc, Form 10-K filed 2026-03-17: “There are significant barriers to entry in the InP substrate market and currently there are only three primary suppliers, including AXT.”
50. AXT Inc, Form 10-K filed 2026-03-17: “To date, we have been issued 198 patents that relate to our VGF products and processes; 153 in China, 22 in the United States, 8 in Japan, 5 in Taiwan, 6 in the European Union, 2 in Germany, 1 in France, and 1 in Korea.”
51. AXT Inc, Form 10-K filed 2026-03-17: “Furthermore, in aggregate, our consolidated raw material companies have been issued 130 patents in China”
52. AXT Inc, Form 10-K filed 2026-03-17: “In 2015, we acquired proprietary wafer processing equipment from Hitachi Metals. The Hitachi Metals purchase includes a license covering the use of the proprietary equipment and Hitachi Metals’ proprietary wafer processing technology.”
53. AXT Inc, Form 10-K filed 2026-03-17: “Our primary competition in the market for compound and single element semiconductor substrates includes Sumitomo Electric Industries (“Sumitomo”), Japan Energy (“JX”), Freiberger Compound Materials (“Freiberger”), Umicore, China Crystal Technology Corp. (“CCTC”) and Vital Materials.”
54. AXT Inc, Form 10-K filed 2026-03-17: “Our primary competitors have their major manufacturing operations in Germany or Japan.”
55. AXT Inc, Form 10-K filed 2026-03-17: “Once a substrate supplier has qualified with a customer, then price, consistent quality and current and future product delivery lead times become the most important competitive factors.”
56. AXT Inc, Form 10-K filed 2026-03-17: “From 2012 to 2015, SOI technology displaced GaAs chips in key sectors, primarily the radio frequency (“RF”) switching function in cell phones.”
57. AXT Inc, Form 10-K filed 2026-03-17: “On July 3, 2023, China announced new export control regulations on materials including gallium and germanium and compounds of these materials, effective as of August 1, 2023. Materials that could be used in military applications, specifically including weapons of mass destruction, were the primary focus. This required Tongmei to seek permits from the applicable Chinese authorities to export gallium arsenide and germanium substrates.”
58. AXT Inc, Form 10-K filed 2026-03-17: “On February 4, 2025, China added indium phosphide substrates to its export control list. As a result, the three wafer substrate product families manufactured by Tongmei all require permits from China’s Ministry of Commerce before they can be exported from China.”
59. AXT Inc, Form 10-K filed 2026-03-17: “On June 11, 2025, Tongmei was informed that it had satisfied the applicable requirements for a permit to export indium phosphide and received its initial export permits from the Ministry of Commerce of the People’s Republic of China to resume shipping indium phosphide substrates to certain customers in Europe and Japan.”
60. AXT Inc, Form 10-K filed 2026-03-17: “our U.S. gallium arsenide customers are considered “dual use” customers: in addition to commercial applications they have significant levels of military involvement. As such, no permits for the export of gallium arsenide to the U.S. have yet been approved.”
61. AXT Inc, Form 10-K filed 2026-03-17: “Reciprocally, the United States increased tariffs on many items from China from 25% to 50%, effective January 1, 2025. On February 1, 2025, the United States again further increased the tariff on imports of many products from China, including our wafer substrates, to 60%. On March 4, 2025, the United States further increased the tariff on imports of many products, including our wafer substrates, to 70%.”
62. AXT Inc, Form 10-K filed 2026-03-17: “In September 2018, the United States announced a list of thousands of categories of goods that became subject to Section 301 tariffs when imported into the United States from China. This pronouncement imposed tariffs on wafer substrates we imported into the United States.”
63. AXT Inc, Form 10-K filed 2026-03-17: “We were incorporated in California in December 1986 and reincorporated in Delaware in May 1998. The Company went public in 1998. We changed our name from American Xtal Technology, Inc. to AXT, Inc. in July 2000.”
64. AXT Inc, Form 10-K filed 2026-03-17: “We formed and founded Tongmei in 1998”
65. AXT Inc, Form 10-K filed 2026-03-17: “On November 16, 2020, we announced a strategic initiative to access China’s capital markets by beginning a process to list shares of Tongmei in an initial public offering (the “IPO”) on the STAR Market, an exchange intended to support innovative companies in China.”
66. AXT Inc, Form 10-K filed 2026-03-17: “In exchange for an investment of approximately $49 million, the Investors received a 7.28% redeemable noncontrolling interest in Tongmei. Pursuant to the Capital Investment Agreements with the Investors, each Investor has the right to require AXT to redeem any or all Tongmei shares held by such Investor at the original purchase price paid by such Investor, without interest, in the event the IPO fails to pass the audit of the Shanghai Stock Exchange, is not approved by the Chinese Securities Regulatory Commission (“CSRC”) or Tongmei cancels the IPO application.”
67. AXT Inc, Form 10-K filed 2026-03-17: “The Shanghai Stock Exchange approved the IPO application on July 12, 2022. On August 1, 2022, the CSRC accepted for review Tongmei’s IPO application. The STAR Market IPO remains subject to review and approval by the CSRC and other authorities.”
68. AXT Inc, Form 10-K filed 2026-03-17: “For example, in December 2025, AXT completed an offering on the Nasdaq and raised gross proceeds of approximately $100 million before deducting underwriting discounts, commissions and other offering expenses.”
69. AXT Inc, Form 10-K filed 2026-03-17: “On May 6, 2024, a putative shareholder class action complaint was filed in the U.S. District Court for the Eastern District of New York on behalf of persons or entities who purchased or acquired our publicly traded securities, against us, Morris S. Young, our Chief Executive Officer, and Gary L. Fischer, our Chief Financial Officer.”
70. AXT Inc, Form 10-K filed 2026-03-17: “Defendants’ motion to dismiss is fully briefed and pending before the Court.”
71. The record on this page: the filing record (the EDGAR submissions feed)
72. The record on this page: the filed annual figures (EDGAR's company facts)
73. AXT Inc, Form 10-K filed 2026-03-17: “Revenue decreased $11.0 million, or 11.1%, in 2025 from $99.4 million in 2024.”
74. AXT Inc, Form 10-K filed 2026-03-17: “Gross margin in 2025 was 12.7% as compared to 24.0% in 2024. The decrease in gross margin is attributed to lower revenue resulting in fixed costs being spread over fewer units and manufacturing variances, particularly in the first half of the year.”
75. AXT Inc, Form 10-K filed 2026-03-17: “Substrates $ 58,900 $ 67,748 $ 47,466 $ (8,848 ) (13.1 )% $ 20,282 42.7 % Raw materials and other 29,426 31,613 28,329 (2,187 ) (6.9”
76. AXT Inc, Form 10-K filed 2026-03-17: “The $8.8 million decrease in wafer substrate sales was the result of lower sales of our germanium wafers. Raw material costs needed for the germanium wafers increased substantially in 2025 but pricing remained competitive. As a result we deliberately reduced our sales of these wafers.”
77. AXT Inc, Form 10-K filed 2026-03-17: “Although demand for InP wafers increased in 2025, revenue declined because of the export permit requirements announced by China on February 4, 2025. GaAs revenue declined slightly.”
78. AXT Inc, Form 10-K filed 2026-03-17: “The $2.2 million raw materials revenue decrease as compared to the same period in 2024 was primarily the result of decreased sales of purified gallium, partially offset by increased revenue from pBN crucibles and pBN-based OLED manufacturing tools sold by BoYu, one of our consolidated raw material companies.”
79. AXT Inc, Form 10-K filed 2026-03-17: “Equity in income of unconsolidated joint ventures decreased $2.7 million to an income of $0.8 million in 2025 from an income of $3.4 million in 2024. The decrease is the result of export restrictions from China on gallium resulting in lower revenue and profit from international sales. Further, gallium suppliers in China reduced their pricing as they competed for market share within their domestic market.”
80. AXT Inc, Form 10-K filed 2026-03-17: “Revenue from customers in North America decreased in 2025 by 77.5% primarily due to export permit requirements on InP established by China on February 4, 2025.”
81. AXT Inc, Form 10-K filed 2026-03-17: “Revenue from customers in Europe decreased in 2025 by 19.0%, primarily due to lower demand for GaAs wafer substrates used in LED and wireless applications and Ge wafer substrates and pBN crucibles sold by one of our consolidated subsidiaries, partially offset by increased demand for InP wafer substrates.”
82. AXT Inc, Form 10-K filed 2026-03-17: “Revenue from customers in Taiwan decreased in 2025 by 7.5%, primarily due to export permit requirements on InP established by China on February 4, 2025.”
83. AXT Inc, Form 10-K filed 2026-03-17: “Revenue from customers in China decreased in 2025 by 1.9%, primarily due to reduced sales of germanium wafer substrates. As a result of an increase in the cost of raw materials needed we deliberately reduced our sales of these wafers. The reduction in germanium revenue was mitigated by increased InP revenue.”
84. AXT Inc, Form DEF 14A filed 2026-03-31: “Initiated manufacturing capacity expansion for indium phosphide and set the goal to double capacity by the end of 2026”
85. AXT Inc, Form DEF 14A filed 2026-03-31: “Further increased our focus on 6-inch InP wafers”
86. AXT Inc, Form 10-K filed 2026-03-17: “Our 8-inch GaAs product has crossed several milestones and is now shipping in small quantities.”
87. AXT Inc, Form DEF 14A filed 2026-03-31: “First indium phosphide permits received in late May, revenue in the second half 2025 was up 27% over the first half of 2025”
88. AXT Inc, Form 10-K filed 2026-03-17: “We believe the growth of AI applications is increasing the need for high-speed data transfer, which may enable a growing increase in InP substrate demand for such data centers.”
89. AXT Inc, Form 10-K filed 2026-03-17: “Subject to review and approval by the CSRC and other authorities, Tongmei hopes to accomplish this goal in the coming months.”
90. AXT Inc, Form 10-K filed 2026-03-17: “Our raw material companies produce materials, including raw gallium (4N Ga), high purity gallium (6N and 7N Ga), starting material for InP, arsenic, germanium, germanium dioxide, pyrolytic boron nitride (pBN) crucibles, quartz tubing and boron oxide (B2O3).”
91. AXT Inc, Form 10-K filed 2026-03-17: “We purchase portions of the materials produced by these companies for our own use and they sell the remainder of their production to third parties.”

Who runs it

Young, Morris S (CEO); Fischer, Gary L (CFO); Chang, David C (VP Global Sales & Marketing); Leblanc, Leonard J (director); Duh, Jia-Bin (director); Liu, Tracy (director); Chen, Jesse (director). 7 officers and directors have filed their own trades in the last fifteen months, names and titles as filed with the SEC, through 2026-09-30.

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