Tongmei Receives Initial Export Permits from China’s Central Ministry of Commerce for Gallium Arsenide and Germanium Substrates

FREMONT, Calif., Sept. 20, 2023 (GLOBE NEWSWIRE) -- AXT, Inc. (Nasdaq: AXTI), a leading manufacturer of compound semiconductor substrates, today announced that Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”), AXT’s subsidiary in Beijing, China, has met the applicable legal and commercial requirements and has received its initial export permits to resume shipping gallium arsenide and germanium substrates to certain customers.

Since China’s announcement of new export control regulations on gallium and germanium materials on July 3, 2023 and the subsequent implementation of those regulations on August 1, 2023, Tongmei has been working diligently with the appropriate Chinese authorities to ensure it understands and abides by all rules and regulations set out in the new gallium and germanium export controls.

Tongmei continues to work with the appropriate Chinese authorities to obtain the necessary permits for additional customers so that it can resume shipping gallium arsenide and germanium substrates to those customers in compliance with all export control regulations.

About AXT, Inc.

AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrates comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). In addition, as part of its supply chain strategy, the company has partial ownership in more than ten companies in China producing raw materials and consumables for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.

Safe Harbor Statement

The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding the resumption of shipping gallium arsenide and germanium substrates to certain customers and Tongmei’s efforts to obtain from the appropriate Chinese authorities the necessary permits for additional customers so that it can resume shipping gallium arsenide and germanium substrates to those customers. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include, but are not limited to, the administrative challenges in applying for and obtaining the necessary permits. Additional uncertainties and factors include, but are not limited to, other factors as set forth in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.

Contacts:
	Gary Fischer
	Chief Financial Officer
	(510) 438-4700
	Leslie Green
	Green Communications Consulting, LLC
	(650) 312-9060