AXT raises private equity financing of up to $545m in Tongmei

What happened

AXT Inc of Fremont, CA, USA — which makes gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) substrates and raw materials at plants in China — says that its majority-owned China-based wafer manufacturing subsidiary Beijing Tongmei Xtal Technology Co Ltd has entered into definitive agreements for a private equity financing. Under the agreements, certain institutional investors would make a private equity investment in Tongmei in ordinary shares of a minimum of RMB1,912,350,000 (about US$285m) and up to a maximum of RMB3,668,639,053.25 (about US$545m). The financing is intended to fund further expansion of Tongmei's manufacturing capacity for indium phosphide substrates, expansion of its principal business operations, capital expenditures, and general working capital. Definitive agreements have been signed, but the financing and the capacity expansion have not been implemented or completed.

Impact and signal

Affected components and suppliers

Source and time

Source: Semiconductor Today · 10/28/2026 · View original source