News: Suppliers
28 October 2026
AXT raises private equity financing of up to $545m in Tongmei
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 to fund further expansion of its manufacturing capacity for indium phosphide substrates, expansion of its principal business operations, capital expenditures, and general working capital. The financing agreements provide for a private equity investment in Tongmei by certain institutional investors 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) in ordinary shares of Tongmei.
“This strategic financing represents a milestone for Tongmei, which is issuing its own shares to provide RMB directly into its operations,” says CEO Morris Young. “Funds raised by Tongmei will be used to advance capacity expansion for indium phosphide wafers at a time when demand for these wafers is outpacing supply. Proceeds will also be used to increase capacity at our raw material companies in China,” he adds. “The lead investor, which is a leading Asia asset manager, has been instrumental in guiding companies through overseas listing process, and is committed to assisting Tongmei’s process to achieve an overseas listing.”
The closing of the financing is subject to a number of customary conditions, including, but not limited to, receipt of required filings from the applicable governmental authorities, and is expected to occur in December. Assuming that the maximum amount is raised, AXT expects to maintain control, own about 73.4% of Tongmei following consummation of the transaction, and continue to consolidate Tongmei in its financial statements.
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