AXT-Backed Tongmei Equity Offering Targets Up to $545 Million

What happened

AXT said its majority-owned subsidiary, Beijing Tongmei Xtal Technology, signed agreements to sell ordinary shares to institutional investors. The investment is set at least RMB 1.91 billion and could reach RMB 3.67 billion. Completion is expected in December 2026 and depends on closing conditions.

Global impact / market context

The funding could help Tongmei expand its indium phosphide production capacity. In return, Tongmei will issue shares, and AXT is expected to own about 73.40% of the subsidiary after the deal. The full amount is not assured because the deal has not yet closed.

What to watch

1. Check whether the deal closes as expected in December 2026; completion is still subject to conditions.
2. Check the final amount raised; the announced investment ranges from RMB 1.91 billion to RMB 3.67 billion.
3. Check whether Tongmei issues the shares and AXT’s ownership becomes about 73.40%; this would show the effect on AXT’s stake.

Affected assets

• AXTI
• Beijing Tongmei Xtal Technology Co., Ltd.
• Indium phosphide

Evidence

• Infoway News — AXT, Inc. (AXTI) Unit Tongmei Secures Up To RMB 3.67B Funding 2026-10-28T13:00:00+00:00
• Infoway News — AXT, Inc. Announces Up to RMB 3.67 Billion (Approximately US$545 Million) in Private Equity Financing for Subsidiary Tongmei 2026-10-28T13:00:00+00:00
• Infoway News — AXT-Backed Tongmei Equity Offering Targets Up to $545 Million 2026-10-28T10:13:00+00:00
• Incident timeline — AXT, Inc. (AXTI) Unit Tongmei Secures Up To RMB 3.67B Funding
• Incident timeline — AXT, Inc. Announces Up to RMB 3.67 Billion (Approximately US$545 Million) in Private Equity Financing for Subsidiary Tongmei
• Incident timeline — AXT-Backed Tongmei Equity Offering Targets Up to $545 Million