AXT Secures 6-Year Supply Agreement with Lumentum with $87M in Deposits

AXT, Inc. has entered into a six-year Capacity Reservation Agreement with Lumentum Operations LLC to supply indium phosphide (InP) wafer substrates. Under the agreement, AXT will reserve a minimum annual production capacity for Lumentum in exchange for substantial deposits that will be applied as credits for future product shipments.

Key Details

• Agreement Term: The agreement, effective July 26, 2026, has an initial term of six years and can be renewed for additional one-year periods.
• Financial Commitment: Lumentum will pay AXT deposits totaling $87 million. An initial $43.5 million is due within 30 business days, with a second $43.5 million payment to be determined in 2028.
• Product & Capacity: AXT will reserve a minimum annual capacity of indium phosphide (InP) wafer substrates for Lumentum, which has a corresponding annual purchase commitment. The deposits will serve as shipment credits for these products.