AXT Secures 3-Year InP Wafer Supply Pact with Coherent, Backed by $22.29M Prepayment
Summary
AXT has secured a three-year Master Development and Supply Agreement with Coherent for 6-inch indium phosphide wafer substrates, including a $22.29 million prepayment. This prepayment is nearly a full quarter's revenue, providing substantial cash flow and revenue visibility for the next three years. The deal supports AXT's planned capacity expansion in Beijing from 2026 to 2028. This positive operational news follows the company's strong Q1 2026 results and a significant capital raise earlier this year, and contrasts with recent insider share sales by the CEO.
At the time of this announcement, AXTI was trading at $56.51 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $1.85 to $143.16. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.