12 September 2017
AXT completes purchase of new manufacturing facility in Dingxing, China
AXT Inc of Fremont, CA, USA – which makes gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge) substrates and raw materials – has completed the purchase of its new manufacturing facility in the city of Dingxing, China. Located in the province of Hebei and under the jurisdiction of the prefecture-level city of Baoding, Dingxing is approximately a 90-minute drive south of the firm’s existing Beijing location.
Featuring ample space for expansion, the new site currently has three existing buildings, comprising about 140,000ft2 of manufacturing space, and 50,000ft2 designated for offices and dormitories. The existing structures will enable the company to move more quickly to production, it is expected.
AXT has already begun to prepare the site for GaAs substrate manufacturing, and is planning a staged relocation of its GaAs equipment and personnel throughout 2017 and 2018, pursuant to its relocation plan. Initial qualification substrates are expected to be available in fourth-quarter 2017. The firm expects to have production-level quantities from both its current site in Beijing and the new Dingxing site for a period of time, and then gradually increase production volume at the new site.
AXT has acquired a total of about 18.8 acres and expects to increase manufacturing capacity at the new location as needed to meet customer requirements. In addition, it will continue to evaluate the potential timing of relocation of its indium phosphide and germanium substrate manufacturing, which is expected to remain at the Beijing facility while the relocation of its GaAs business is completed.
“We have worked closely and collaboratively with both local and central government authorities in China to fulfill the government’s request for the relocation of our gallium arsenide production, while ensuring that we can continue to serve the needs of our customers and support the growth of our business,” says CEO Morris Young. “This step underscores the desire of all parties involved to make our relocation a success. I want to thank the city officials of Dingxing and Baoding for welcoming AXT to this site,” he adds.
“With its relative close proximity to our current facility, its existing manufacturing space, and its room for expansion, we believe our new location positions us for both a successful and efficient relocation of our gallium arsenide business, as well as the expansion of our capacity as current and emerging applications for our technology increase customer demand,” Young continues. “Our goal is to make our new location a world-class manufacturing facility and a showcase of our capabilities for customers and investors,” he adds.
“Our dedicated manufacturing and operations teams have been working diligently over the past year to prepare for a smooth and efficient transition for our customers,” notes chief operating officer Wilson Lin. “We are committed to supporting their requirements from our current location, while providing an efficient qualification process and transition plan for the new facility.”