AXT, Inc. (AXTI) said its majority-owned Beijing Tongmei Xtal Technology Co., Ltd. agreed to raise approximately $285 million to $545 million through private equity financing, aimed at expanding indium phosphide manufacturing and supporting operations.
AXT disclosed the financing Oct. 28, after the agreements were executed Oct. 27. Closing is targeted for December 2026, contingent on standard conditions; the transaction could still fail to complete.
Tongmei plans to use proceeds for business operations, capital expenditures and working capital. Separately, the broader plan includes capacity increases at AXT’s raw-material companies in China.
Separately, AXT agreed to contribute renminbi worth $400 million toward a subscription for 342,998,797 Tongmei shares.
