AXT, Inc. has appointed Tracy Liu to its Board of Directors, effective June 17, 2026, expanding the board from four to five members. Liu brings over 30 years of experience in business advisory, tax strategy, and accounting, including a decade with Big Four public accounting firms. Her appointment comes as AXT pursues an aggressive strategic path to increase capacity for indium phosphide wafers, driven by rising demand from AI-driven optical data transmission.

Liu's background includes extensive work with high-technology and semiconductor companies in Silicon Valley and the Asia-Pacific region. She has advised multinational corporations on international tax planning, cross-border operations, and regulatory matters in the U.S. and China. Her expertise is expected to provide valuable insight into AXT's global operations, particularly for its subsidiary, Tongmei, based in China.

Currently, Liu serves as an independent director and Chair of the Audit Committee at ACM Research, Inc., a semiconductor equipment company. She previously chaired the Supervisory Board of ACM Shanghai, listed on the Shanghai STAR Market. Liu holds a master's degree in accounting with a specialization in taxation and a bachelor's degree in computer science. She is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants.

AXT's CEO Morris Young highlighted Liu's strategic and financial expertise, noting her deep understanding of international operations, including in China. The board expansion aligns with AXT's efforts to capitalize on growing demand for its semiconductor substrate wafers, used in AI/data center connectivity, 5G infrastructure, and other advanced applications.

Key Details of Tracy Liu's Appointment

AXT, headquartered in Fremont, California, manufactures high-performance compound semiconductor substrate wafers, including indium phosphide, gallium arsenide, and germanium. The company operates manufacturing facilities in China and maintains sales and administrative functions in the U.S.

Beijing Tongmei Xtal Technology Co., Ltd., a subsidiary of AXT, Inc., has secured a Long-term Supply Agreement with Nanjing Casela Technologies Corporation, Ltd. for indium phosphide wafer substrates. The agreement, finalized on June 11, 2026, commits Casela to purchase a fixed aggregate quantity of wafers for delivery throughout the 2027 calendar year. This arrangement secures production capacity and raw-material allocation for Casela while granting the buyer supply priority, ensuring a steady revenue stream for Tongmei amounting to RMB 173,000,000 (approximately US $25.4 million).

Financial Terms and Payment Schedule

The agreement outlines specific payment obligations to mitigate risk for Tongmei. Casela is required to remit 50% of the total purchase price as a prepayment within 15 business days of the agreement's execution. The remaining 50% is due on or before December 31, 2026. Deliveries are scheduled on a monthly basis throughout 2027. To enforce volume commitments, Casela must purchase at least 80% of the fixed aggregate quantity; failure to meet this threshold triggers a cancellation fee for the unpurchased wafers.

Operational Provisions and Breach Terms

Tongmei has agreed to prioritize any excess demand from Casela during the contract term, subject to available capacity and terms no less favorable than those offered to similar customers. Pricing for any excess supplies will be detailed in a supplemental agreement. The contract defines specific events as fundamental breaches, including order cancellation, failure to take possession of goods, payment delinquency exceeding 30 days, or failure to meet the 80% purchase threshold. In the event of such a breach, Tongmei retains the right to terminate the agreement and retain all previously paid amounts.

The agreement includes standard provisions covering delivery-schedule adjustments, pricing mechanisms, product warranties, remedies for breach, and dispute resolution. An English translation of the Long-term Supply Agreement will be filed as an exhibit to AXT, Inc.'s quarterly report on Form 10-Q for the period ended June 30, 2026.