AXT Inc. Subsidiary Enters $25.4M Indium Phosphide Wafer Supply Agreement with Casela

On June 11, 2026, AXT Inc.'s subsidiary Beijing Tongmei Xtal Technology Co., Ltd. entered into a long-term supply agreement with Nanjing Casela Technologies Corporation, Ltd. The agreement establishes a binding commitment for Casela to purchase indium phosphide (InP) wafer substrates worth approximately $25.4 million (RMB 173,000,000) during 2027. Casela must make a 50% prepayment within 15 business days and pay the remaining 50% by December 31, 2026. The agreement includes a minimum purchase requirement of 80% of the fixed quantity, with cancellation fees for any shortfall. Tongmei will reserve production capacity and grant supply priority to Casela in exchange for this binding commitment. The agreement contains customary provisions for delivery schedule changes, pricing, warranties, and dispute resolution.