Joint Venture Operations in China

Submitted by drupaladmin on Thu, 2006-02-09 02:31.

As the raw materials required by our compound semiconductor substrates play such an essential role in our growth and reproducibility, we participate in joint ventures with five Chinese companies. Through them, we manufacture and sell critical materials and parts listed in the products overview. This arrangement reduces our dependency on other suppliers of raw materials, plus it affords us price and volume stability unavailable to those purchasing on the open market. In addition, AXT is a majority owner in three of the key ventures, which affords us board-level control.

The five joint ventures are:
Beijing Ji Ya Semiconductor Co. Ltd.
Producer of 4N Ga
AXT ownership - 46%

Nanjing Jin Mei Gallium Co. Ltd.

Producer of 6N & 7N Ga, B2O3
AXT ownership - 83%

Xilingol Tongli Germanium Co. Ltd.

Producer of Ge
AXT ownership - 25%

Emeishan Jia Mei High Purity Materials Co. Ltd.

Producer of 4N, 6N and 7N Arsenic
AXT ownership - 25%

Beijing Bo Yu Semiconductor Vessel Craftwork Technology

Producer of pBN crucibles, parts for MBE use.
AXT ownership - 70%

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