Wedbush Securities reported AXT Inc. has not faced significant disruption from China's export delays. These delays affect critical materials such as germanium and neodymium.
Wedbush noted China's control over key material supply remains a risk. However, this has been a manageable issue for companies like AXT.
AXT produces indium phosphide, gallium arsenide, and germanium substrates. The company's entire manufacturing and raw material supply chain is based in China. This makes AXT highly exposed to China's export policies and permit requirements.