AXT establishes second manufacturing facility in China

AXT Inc has agreed with the Administrative Commission of Tianjin Economy and Technology Development Zone to establish a second manufacturing facility in Tianjin, China. The arrangement provides the company with land use rights for about 32 acres of industrial land in the Yixian Scientific and Industrial Park for the construction of a compound semiconductor substrate manufacturing facility that would be completed in 2017.

The company has committed to a $12.5m investment in exchange for land use rights, enterprise and individual income tax rebates, and employee hiring and development subsidies. The facility should provide AXT with substantial substrate manufacturing capacity expansion, complementing its current 190,000sq ft facility in Beijing.

Says AXT CEO Morris Young “While our current facility in Beijing continues to provide us with ample capacity to grow our business for the next 18 to 24 months, we believe that a second manufacturing facility in Tianjin will provide us with additional capacity in light of positive trends in the demand for wireless devices, the proliferation of LEDs, and the adoption of photovoltaic technology.”

“The positive financial considerations of this arrangement, coupled with what we believe to be our longer-term capacity needs, provide compelling incentives to proceed with our expansion plans at this time,” continues Young. “This arrangement allows us to begin planning for growth and redundancy in our business in a measured and incremental way that is suitable both to the current economic conditions.”


AXT Inc.