AXT-Tongmei signs 3-year wafer supply deal with Coherent

AXT-Tongmei, Inc., a subsidiary of AXT, Inc., has entered into a Master Development and Supply Agreement with Coherent Corp., effective June 25, 2026, according to an SEC filing.

The agreement covers the development and supply of 6-inch indium phosphide wafer substrates for an initial three-year term. Under the terms, Coherent will make a prepayment of $22,288,500 to AXT-Tongmei in exchange for a committed supply capacity.

AXT has agreed to expand manufacturing capacity at its Beijing, China facility between 2026 and 2028 to meet the commitment. Specific per-wafer prices have been established, and the prepayment will be applied toward product purchases until the full amount is allocated.

The prepayment is refundable to Coherent at its sole option if the amount has not been fully applied upon expiration or termination of the agreement. If Coherent fails to meet minimum order quantity requirements, the remaining unused prepayment becomes nonrefundable and AXT retains the right to terminate. Coherent may terminate the agreement if AXT fails to meet its capacity commitment for more than six consecutive calendar months, and would be entitled to a refund of the unused prepayment in that case.

Any capacity beyond the committed quantity will be offered to Coherent at the same terms. The agreement includes standard confidentiality, force majeure, indemnification, and warranty provisions. The full agreement is expected to be filed as an exhibit to AXT's Form 10-Q for the period ended June 30, 2026.

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