AXT Inc (NASDAQ:AXTI) has resumed wafer processing production of all substrate types, including indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge), at its manufacturing facility in Beijing, China. This is after an electrical fire incidence that occurred in March16, 2017.
A leading manufacturer of compound semiconductor substrates, AXT reported previously that the fire accident caused no damage to its indium phosphide crystal growth or wafer production units.
Also, the company’s 6-inch gallium arsenide and germanium crystal growth furnaces were not destroyed by the fire. Neither there was any damage to its electrical supply that supports these 6-inch crystal growth furnaces.
What saved the firm from damages is the company’s custom-designed furnaces that enabled it to rotate the key furnace hardware between different growth diameters. The firm plans to employ some of the 6-inch furnace capacity for its 2-inch, 3-inch and 4-inch diameter gallium arsenide and germanium crystal growth production.
Besides that, the company stated that it has adequate redundancy in furnaces and plans to move furnaces within the plant to an area selected for crystal growth expansion. This will connect the Power to re-establish the smaller diameter crystals to full production.
The company trusts that it will come back to its full production during the second quarter. Furthermore, it plans to move its staged inventory of smaller diameter crystalline ingots to wafer processing to meet urgent consumer demands.
Morris Young, the Chief Executive Officer of AXT commented that they are grateful the fire incidence had no injuries occurred and there was no damages to the company’s facilities. He further thanked the local authorities for their timely response and assistance.
We remain convinced about our business opportunities and are deeply committed to supporting the requirements of our customers through this process.”
AXT wafer processing production area, including its clean room, is located in a building across the street in which the electrical short circuit fire occurred. It is amazing that no structural damage was experienced to the facility when the fire occurred as previously announced.
