AXT, Inc. Announces the Appointment of Morris Young as Chairman of its Board of Directors
AXT, Inc. (NasdaqGS: AXTI) announced the appointment of Morris Young as Chairman of the Board, effective Aug. 12, 2021. Young, who is also CEO, takes over from Jesse Chen, who remains Lead Independent Director. This decision aligns with the upcoming IPO plans for Beijing Tongmei Xtal Technology Co., Ltd. on China's STAR Market, influenced by Tongmei’s advisors. Young has been with Tongmei since its inception in 1998 and previously chaired AXT from 1998 to 2004, indicating continuity in leadership.
- Morris Young appointed Chairman may offer fresh perspectives.
- Continuity in leadership with Young's extensive experience at Tongmei.
- Potential concerns about the experience gap left by Jesse Chen's reduced role.
- Possible challenges related to Tongmei's IPO amid geopolitical tensions.
FREMONT, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- AXT, Inc. (NasdaqGS: AXTI), a leading manufacturer of compound semiconductor substrates, today announced that Morris Young, Chief Executive Officer, has been appointed Chairman of its Board of Directors, effective Aug. 12, 2021. Jesse Chen, who has served as Chairman of AXT’s Board of Directors since 2009, will continue to serve as Lead Independent Director and as a member of the Board.
The Nominating and Corporate Governance Committee and the Board of Directors decided to make this appointment in preparation for the proposed initial public offering (“IPO”) by Beijing Tongmei Xtal Technology Co., Ltd. (“Tongmei”) on the Shanghai Stock Exchange’s Sci-Tech innovAtion board (the “STAR Market”). This appointment comes at the request and advice of Tongmei’s advisors on the IPO matter.
Dr. Young has been Chairman of Tongmei since its founding in 1998 and will continue in this role. Previously, Dr. Young served as AXT’s Chairman of the Board of Directors from February 1998 to May 2004.
About AXT, Inc.
AXT is a material science company that develops and manufactures high-performance compound and single element semiconductor substrate wafers comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). The company’s substrate wafers are used when a typical silicon substrate wafer cannot meet the performance requirements of a semiconductor or optoelectronic device. End markets include 5G infrastructure, data center connectivity (silicon photonics), passive optical networks, LED lighting, lasers, sensors, power amplifiers for wireless devices and satellite solar cells. AXT’s worldwide headquarters are in Fremont, California where the company maintains sales, administration and customer service functions. AXT has its Asia headquarters in Beijing, China and manufacturing facilities in three separate locations in China. In addition, as part of its supply chain strategy, the company has partial ownership in ten companies in China producing raw materials for its manufacturing process. For more information, see AXT’s website at http://www.axt.com.
Safe Harbor Statement
The foregoing paragraphs contain forward-looking statements within the meaning of the Federal securities laws regarding the proposed listing of shares of Tongmei on the STAR Market. These forward-looking statements are based upon assumptions that are subject to uncertainties and factors relating to the company’s operations and business environment, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. These uncertainties and factors include, but are not limited to: the withdrawal, cancellations or requests for redemptions by private equity funds in China of investments in Tongmei, the administrative challenges in satisfying the requirements of various government agencies in China in connection with the investments in Tongmei and the listing of shares of Tongmei on the STAR Market, continued open access to companies to list shares on the STAR Market, investor enthusiasm for new listings of shares on the STAR Market and geopolitical tensions between China and the United States. Additional uncertainties and factors in our operations and business environment include, but are not limited to: the timing and receipt of significant orders; the cancellation of orders and return of product; emerging applications using chips or devices fabricated on our substrates; end-user acceptance of products containing chips or devices fabricated on our substrates; our ability to bring new products to market; product announcements by our competitors; the ability to control costs and improve efficiency; the ability to utilize our manufacturing capacity; product yields and their impact on gross margins; the relocation of manufacturing lines and ramping of production; possible factory shutdowns as a result of air pollution in China; COVID-19 or other outbreaks of a contagious disease; tariffs and other trade war issues; the financial performance of our partially owned supply chain companies; policies and regulations in China; and other factors as set forth in the company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission. Each of these factors is difficult to predict and many are beyond the company’s control. The company does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.
| Contacts: | |
| Gary Fischer | |
| Chief Financial Officer | |
| (510) 438-4700 | |
| Leslie Green | |
| Green Communications Consulting, LLC | |
| (650) 312-9060 |
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