AXT Shares Are Tumbling Today: What's Going On?
Portfolio Pulse from Adam Eckert
AXT Inc's shares are trading lower after China announced export restrictions on select rare earth metals, including gallium and germanium, which are used in semiconductor production. The restrictions will take effect on August 1. AXT's China-based subsidiary Tongmei plans to seek permits to export these products. Gallium arsenide and germanium substrates exported outside of China contributed approximately $4.3 million in revenue for AXT in the first quarter.
July 05, 2023 | 3:49 pm
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AXT Inc's shares are trading lower due to China's export restrictions on select rare earth metals. The company's subsidiary plans to seek permits to export these products.
China's export restrictions on gallium and germanium, which are used in semiconductor production, directly impact AXT Inc as these products contributed significantly to their revenue. The company's shares are trading lower due to this announcement. However, the company's subsidiary plans to seek permits to export these products, which may mitigate the impact.
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