Slide 1: A Material Science Company
A MATERIAL SCIENCE COMPANY Serving the semiconductor industry (NASDAQ: AXTI)
Slide 2: Legal Disclosure
Legal Disclosure SEE ADDITIONAL RISK FACTORS ON FORM 10-Q AND FORM 10-K This presentation contains forward-looking statements within the meaning of the Federal securities laws, including, for example, statements regarding the timing and completion of the proposed listing of shares of Tongmei on the
Slide 3: AXT Snapshot
HI STO R Y Founded in 1986; IPO in 1998 P RO D U C TS Alternative wafers when silicon will not work P RO C ESS TEC HN O LO GY Pioneered Vertical Gradient Freeze (VGF) crystal growth; substantial process AXT technology and IP FAC IL IT Y Snapshot Headquarters in Fremont, CA MA NU FAC TU R IN G Launch
Slide 4: Indium Phosphide (InP) Overview
Indium Phosphide (InP) Overview • Growth engine ignited in 2014 • Applications using InP are expanding • We expect a long product life cycle— mirroring GaAs 4
Slide 5: Indium Phosphide (InP) Market
Indium Phosphide (InP) Market K E Y AP P LI C AT IO N S M A R KE T DY N A M IC S • AI / Data center connectivity (silicon • Data center applications require very photonics, high-speed lasers and low defect density detectors) • Strong barriers to entry • Passive Optical Networks (PONs) ⚬ Crystal grow
Slide 6: Gallium Arsenide (GaAs) Overview
Gallium Arsenide (GaAs) Overview • Ou r first strong growth engine, even before our IPO in 1998 • A long product life cycle populated with new applications • Supplying 8-inch gallium arsenide wafers to major customers 6
Slide 7: Gallium Arsenide (GaAs) Market
Gallium Arsenide (GaAs) Market K E Y AP P LI C AT IO N S M A R KE T DY N A M IC S • Power amplifiers • Tier-one customers require very low defect density • Industrial lasers • Limited competitive landscape • Printer heads • New opportunities developing • LED lighting and display • Horticulture 7
Slide 8: Sophisticated Supply Chain
Sophisticated Supply Chain • Ownership interest in over ten raw material companies in China • A risk minimization strategy if supply shortages occur • AXT is uniquely positioned to secure key materials • Tier 1 customers attracted to this structure 8
Slide 9: Financials
Financials 2024 2023 2022 2021 2020 2019 FY FY FY FY FY FY ($ in M) Revenue $99.36 $75.80 $141.10 $137.40 $95.40 $83.30 Gross Margin %* 24.3% 18.1% 37.2% 34.8% 31.70% 29.80% Operating Expense* $35.86 $31.76 $35.94 $30.37 $23.81 $22.92 Net Profit/(Loss)* $(8.53) $(14.34) $19.82 $19.09 $5.86 ($0.25) *
Slide 10: STAR Market Progress
STAR Market Progress • Announced intention to seek capital by listing Tongmei to IPO in China • Separate listing of Tongmei, no change regarding the current Nasdaq listing of AXTI • Tongmei’s IPO application was approved by the Shanghai Stock Exchange (“SSE”) in July 2022 • The application is now be
Slide 11: AXT Market Opportunity
AXT Market Opportunity • New facilities, equipment and capacity • Selling into major long-term technology trends: AI / data center expansion, industrial lasers, LED lighting and display, laser -based sensing, wireless devices, and more • Limited competitive landscape • Market-leading InP technology
Slide 12: Thank You
Thank You