AXT, Inc. designs, develops, manufactures and distributes high-performance compound semiconductor substrates. Our customers use our products to fabricate integrated circuits for electronic systems that operate the latest fiber optic communications, wireless communications and lighting display applications. Although our process and products are complex and technically sophisticated, our value message is elegantly straightforward - as expressed by our tagline's three AXT VGF attributes. They are:
Strength: Twenty years ago, we pioneered the commercialization of vertical gradient freeze, or VGF technology for manufacturing compound semiconductor substrates. Our proprietary VGF crystal growth process technology produces substrates with competitive sustainable advantages such as lower etch pit density (EPD) compared with conventional methods, lower stress, and the greatest mechanical strength, so that our customers experience less breakage and attain higher yields. In addition, our management team, under the direction of Dr. Morris Young, CEO, represents strength in knowledge and experience, reflecting more than 120 years of achievement in the semiconductor industry.
Performance: Our customers manufacture LEDs, electronic devices for switches, power amplifiers and laser diodes. Our VGF technology achieves excellent diameter control, outstanding radial symmetry, low axial and radial temperature gradient, and excellent thermal dynamic stability. These advantages result in ultra-thin wafers greater than or equal to 100 microns, without the need for backside lapping after epitaxy. We also perform for customers by offering off-orientation wafers, made to order, such as 110, (111)A, and (111)B.
Innovation: AXT was the first company to commercialize VGF technology in the industry. We have continued our track record of innovation as the first company to introduce 6-inch-diameter substrates produced using VGF technology. And today, we remain the only company to manufacture germanium substrates using VGF technology. Our substrate manufacturing facility in Beijing is the largest in the world. In addition to innovations in new products for the marketplace, we are also advancing our ability to be the market's lowest cost producer. We are adding state-of-the-art equipment for process control and material characterization. From a business perspective, we are the first company in our industry to establish raw material subsidiaries & joint ventures in China. Today we have a total of 10 subsidiaries & joint ventures, through which we offer raw materials such as Ga-4N, 6N, and 7N, Ge, As-4N, 6N, and 7N, pBN components, crucibles, and other related MBE parts. In addition, we pioneer better ways to support customers with greater responsiveness, such as offering consignment for their spot business opportunities, or meeting regularly with customers' marketing and technical people to match our material development with their product plans, so that we can decrease their time to market.
AXT's products include both high-performance semiconductor substrates for major electronic and opto-electronic applications, and a line of industry-critical raw materials.
In substrates, our main product line consists of gallium arsenide (GaAs) substrates in one-, two-, three-, four-, five-, and six-inch diameters. We offer a second product line of indium phosphide (InP) substrates in two-, three-, and four-inch diameters. We also produce single-element substrates manufactured from germanium (Ge) in two- and four-inch diameters. We produce our wafers at our Tongmei facility, located in a suburb of Beijing. This large manufacturing complex totals eight buildings with about 300,000 square feet of factory area, making it what we believe is the world's largest III-V wafer production facility.
Regarding raw materials, we participate in 10 joint ventures in China that offer products critical to the entire substrate manufacturing industry. Those materials include gallium (4N, 6N and 7N Ga), arsenic (4N, 6N and 7N) and germanium, pyrolitic boron nitride (pBN) crucibles for growing crystals, and boron oxide. These raw materials are used in AXT's products and are also sold to third parties.
-- GaAs SI
-- GaAs SC
-- InP SI
-- InP SC