AXT, Inc. addressed the potential impact of the announcement of China’s new export control regulations on gallium- and germanium-related materials, which take effect on August 1. Tongmei, AXT’s subsidiary in China, expects to proceed to immediately seek permits from the applicable Chinese authorities to export gallium and germanium substrate products. Indium phosphide substrates are not included in the new export control regulations, and, therefore, exports of indium phosphide will not require export approvals as part of these regulations. In Q1, gallium arsenide and germanium substrates exported outside of China contributed approximately $4.3M in revenue, primarily for consumer, automotive, display, and industrial applications. “We are actively pursuing the necessary permits and are working to minimize any potential disruption to our customers,” said Morris Young, CEO.
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