AXT is a materials science company that develops and manufactures high-performance semiconductor substrates, including indium phosphide, gallium arsenide, and germanium wafers, serving applications in broadband, fiber optics, wireless communications, LEDs, solar cells, and optical sensing. The company operates vertically integrated manufacturing facilities and raw materials production in China, leveraging cost advantages and proprietary crystal-growth technology while maintaining a diversified customer base across Asia and Western Europe. The company generates revenue from both substrate products and raw materials used in semiconductor production, benefiting from high barriers to entry and a qualified technical team in a market with limited global competitors.