News: Suppliers
10 July 2025
AXT reduces Q2 revenue guidance from $20–22m to $17.5–18m
For second-quarter 2025, AXT Inc of Fremont, CA, USA — which makes gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) substrates and raw materials — expects preliminary revenue of $17.5–18m, below the guidance of $20–22m provided on 1 May and down from $27.9m a year ago. This is due primarily to slower-than-expected issuance of export control permits for its GaAs products in Q2 and a weaker demand environment in China.
“Though we continue to feel confident about our participation in a number of exciting technology trends, the current geopolitical environment remains challenging across our business,” says CEO Morris Young. “Further, the demand environment in China has been weaker than expected for our gallium arsenide substrate business, as well as our consolidated raw material joint ventures,” he adds. “That said, we saw a meaningful increase in AI-related demand for indium phosphide in China during Q2 and were also pleased that our subsidiary, Beijing Tongmei Xtal Technology Co, received its first export control permits for indium phosphide late in the quarter. In addition, we remain highly focused on gross margin improvement and, despite the revenue shortfall, we expect to deliver Q2/2025 gross margins in the high single digits.”
AXT’s full financial results for Q2/2025 will be announced on 31 July.
