AXT, Inc. (AXTI), a leading manufacturer of semiconductors, announced that the company has been awarded with a production order from IQE PLC (AIM: IQE). This agreement is valued at approximately $15.1 million, with the option of IQE purchasing an additional $3.5 million of product.

IQE is a global supplier of advanced semiconductor wafers with products that cover a diverse range of applications. IQE provides clients with a ‘one stop shop’ for any number of wafer needs, an often unmet, niche market.

Drew Nelson, CEO of IQE, stated, “AXT is well positioned to be able to accommodate IQE’s increasing demand, particularly in larger diameter gallium arsenide substrates. expansive manufacturing capacity, unique raw material capability and broad product portfolio make it an ideal partner to support our strong growth plans for 2008.”

Phil Yin, CEO of AXT, added, “As a result of close collaboration on qualifying on various wireless related requirements, we are very pleased to have been chosen as a major supplier to IQE. This agreement recognizes our unique capability to scale our manufacturing in order to meet the needs of our customers and underscores our success in providing a consistently high-quality product, backed by superior engineering support and customer care.”

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