AXT Inc. secured a supply agreement with China’s Nanjing Casela for indium phosphide (InP) substrates. The deal targets rising demand in artificial intelligence and advanced optics. This partnership aims to reduce exposure to export risks linked to US-China trade tensions.
Surging data center demand has pushed the company’s order backlog past $100 million. AXT plans to double its InP production capacity in 2026. The company will double production capacity again in 2027.