--- title: "Indium Phosphide giant AXT and Coherent strike a 3-year supply agreement, soaring after hours" type: "News" locale: "en" url: "https://longbridge.com/en/news/291604421.md" description: "The world's largest indium phosphide substrate supplier AXT announced that its subsidiary has signed a three-year supply agreement with Coherent, covering the development of 6-inch wafers. Coherent has prepaid approximately $22.29 million to secure production capacity, and AXT will expand its production capacity at its Beijing plant. This news drove AXT's stock price up 5.51% in after-hours trading, following a significant decline due to market concerns" datetime: "2026-07-03T01:01:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291604421.md) - [en](https://longbridge.com/en/news/291604421.md) - [zh-HK](https://longbridge.com/zh-HK/news/291604421.md) --- # Indium Phosphide giant AXT and Coherent strike a 3-year supply agreement, soaring after hours The world's largest indium phosphide (InP) substrate supplier AXT Inc. announced that its subsidiary AXT-Tongmei, Inc. has signed a three-year silicon wafer supply agreement with Nvidia Corp.'s CPO partner Coherent Corp., causing its stock price to jump in after-hours trading. According to reports from StreetInsider and TipRanks, AXT submitted the latest filing to the U.S. Securities and Exchange Commission (SEC) on the 2nd, indicating that the agreement officially took effect on June 25, 2026. This agreement primarily covers the development and supply of 6-inch indium phosphide wafer substrates, with an initial contract term of three years. Under the terms of the contract, Coherent will prepay AXT-Tongmei $22,288,500 to secure the promised production capacity. To fulfill the aforementioned capacity commitment, AXT has agreed to expand the production capacity of its Beijing plant from 2026 to 2028. The parties have set specific prices for each wafer, and the prepayment will be directly deducted from subsequent product procurement amounts until fully offset. The contract terms also specify relevant refund and termination mechanisms. If the prepayment has not been fully offset by the expiration or termination of the contract, Coherent may unilaterally choose to request a refund of the remaining amount. Conversely, if Coherent fails to meet the minimum purchase quantity, the remaining unused prepayment will not be refundable, and AXT retains the right to terminate the contract. Additionally, if AXT fails to fulfill its capacity commitment for more than six months, Coherent has the right to terminate the agreement and may request a full refund of the unused prepayment. The agreement also states that if future output exceeds the committed quantity, it will be prioritized for Coherent under the same conditions. The complete contract is expected to be officially disclosed as an appendix when AXT publishes its 10-Q quarterly report in April to June. On the 2nd, AXT's stock fell 12.93% during regular trading, closing at $56.62, marking a new closing low since April 8; it surged in after-hours trading, rising 5.51% to $59.74 as of the time of writing. AXT's stock price plummeted 30.13% in June and has continued to decline by 21.45% in July to date. (This article is authorized for reprint by MoneyDJ News; the main image source: Coherent) ### Related Stocks - [AXTI.US](https://longbridge.com/en/quote/AXTI.US.md) - [COHR.US](https://longbridge.com/en/quote/COHR.US.md) - [AXTU.US](https://longbridge.com/en/quote/AXTU.US.md) - [AXTX.US](https://longbridge.com/en/quote/AXTX.US.md) - [COHX.US](https://longbridge.com/en/quote/COHX.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [AXT’s Tongmei shifts IPO focus to Hong Kong](https://longbridge.com/en/news/292080357.md) - [AXT Wins 3-Year InP Wafer Supply Pact With Coherent, Backed by $22.29M Prepayment](https://longbridge.com/en/news/291591019.md) - [AXT (AXTI) Could Be 33% Below Fair Value As Russell Growth Index Adds Draw Fresh Attention](https://longbridge.com/en/news/291583132.md) - [AXT signs 3-year supply deal with Coherent, secures USD 22.29 million prepayment](https://longbridge.com/en/news/291589772.md) - [$100 Invested In AXT 10 Years Ago Would Be Worth This Much Today](https://longbridge.com/en/news/291599042.md)