AXT Posts Stronger Q1, Secures $632.5 Million to Double Indium Phosphide Capacity

Overview

• AXT, which reported Thursday, posted Q1 revenue of $26.9 million with gross margin at 29.6% and a narrowed GAAP net loss of $1.6 million.
• The company closed a $632.5 million raise to fund Tongmei’s indium phosphide buildout and R&D, including work on larger 6‑inch wafers.
• Management said current output capacity has reached 17 million wafers per quarter and is targeting about 35 million per quarter by late 2026, then roughly doubling again in 2027.
• Guidance for Q2 calls for about $34 million in revenue and non‑GAAP earnings of $0.06 to $0.08 per share, with results dependent on the timing of export permits for indium phosphide shipments.
• Talks on long‑term supply deals with tier‑one customers and interested hyperscalers are advancing, while Tongmei’s planned STAR Market listing remains under CSRC review.