AXT Inc. signed a three-year supply agreement with Coherent Corp. through its subsidiary AXT-Tongmei. The contract takes effect June 25, 2026. Both companies will develop and mass-produce 6-inch indium phosphide (InP) wafer substrates. These components support advanced optoelectronics and communications technologies.
Coherent issued a prepayment of approximately $22.3 million. AXT will use the funds to expand manufacturing capacity at its Beijing facility between 2026 and 2028. The prepayment serves as a credit against future wafer purchases.
The deal secures a dedicated supply for Coherent and provides AXT with predictable long-term demand. The agreement establishes specific per-wafer pricing. Refundability of the prepayment depends on AXT meeting minimum order and capacity commitments.