News: Suppliers
18 June 2026
Nanjing-based Casela to buy $25.4m of InP wafers from AXT’s Tongmei during 2027
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 subsidiary Beijing Tongmei Xtal Technology Co Ltd has entered into a long-term supply agreement to reserve production capacity and raw-material allocation for, and grant supply priority to, Nanjing Casela Technologies Corporation Ltd.
In exchange, Casela has made a binding commitment that, during 2027, it will purchase an agreed quantity of indium phosphide (InP) wafer substrates for a total price of RMB173m (about US$25.4m), to be delivered on a monthly schedule. Casela must pre-pay 50% of the total purchase price within 15 business days after signing the agreement, with the remaining 50% due on or before 31 December 2026. Casela is required to purchase at least 80% of the agreed quantity of InP wafer substrates, otherwise it must pay a cancellation fee for the unpurchased quantity.
If Casela’s demand exceeds the committed quantity, Tongmei will — subject to available capacity and on terms no less favorable than those offered to similarly situated customers — prioritize Casela’s excess demand, under supplemental terms.
Order cancellation, Casela's failure to take possession of goods made available for delivery, payment delinquency exceeding 30 days or failure to reach the 80% purchase threshold each constitute a fundamental breach, upon which Tongmei may terminate the agreement and retain all amounts previously paid by Casela.
AXT’s revenue grows 17% in Q1 after greater-than-expected export permits
AXT announces exercise of over-allotment option in public offering
AXT’s Tongmei receives China export permits to resume shipping InP substrates to certain customers
