AXT Inc. entered into a Capacity Reservation Agreement with Lumentum Operations LLC for the supply and capacity reservation of indium phosphide wafer substrates. The agreement establishes a six-year commitment beginning July 26, 2026, requiring Lumentum to reserve minimum annual product capacity. In consideration, Lumentum agreed to pay an initial deposit of $43,500,000 due within thirty business days and a second deposit of $43,500,000 with payment terms to be determined in 2028. These deposits serve as shipment credits against future purchases. AXT operates in the semiconductor substrate manufacturing industry.
