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Technical Insight

AXT completes substrate supply guarantee program (Materials and Equipment)

AXT (Fremont, CA) recently announced the completion of its substrate "Supply Guarantee Program" for 2001, which was implemented last September. Under the program, AXT supplied an agreed amount of wafers to participating customers at predetermined delivery dates and prices in exchange for partial non-refundable payments in advance. A portion of AXT s substrate capacity was allocated to the program, which was initiated to address concerns over wafer shortages and availability. To date, AXT has reached agreements with nine customers for GaAs and InP wafers totaling $91.6 million over the course of 2001. While the program is finished for 2001, AXT will sell substrates under short-term purchase contracts or agreements with no prepayment.
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