<SEC-DOCUMENT>0001558370-16-010434.txt : 20170120
<SEC-HEADER>0001558370-16-010434.hdr.sgml : 20170120
<ACCEPTANCE-DATETIME>20161207161028
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001558370-16-010434
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161207

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AXT INC
		CENTRAL INDEX KEY:			0001051627
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				943031310
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4281 TECHNOLOGY DR.
		CITY:			FREMONT
		STATE:			CA
		ZIP:			94538
		BUSINESS PHONE:		510.438.4734

	MAIL ADDRESS:	
		STREET 1:		4281 TECHNOLOGY DR.
		CITY:			FREMONT
		STATE:			CA
		ZIP:			94538

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN XTAL TECHNOLOGY
		DATE OF NAME CHANGE:	19971217
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
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		<title>
			axti_Current_Folio_2015CommentLetterCorrespondent
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	<body><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;">
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-align:center;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">December 7, 2016</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;font-size:12pt;text-decoration:underline;">Via EDGAR and E-mail </font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Securities and Exchange Commission</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Division of Corporation Finance </font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">100 F Street, N.E.</font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Washington, D.C. 20549-3720</font>
		</p>
		<p style="margin:0pt 0pt 0pt 36pt;line-height:100%;text-indent: -36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Attention:<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font>Brian Cascio, Accounting Branch Chief</font>
		</p>
		<p style="margin:0pt 0pt 0pt 36pt;line-height:100%;text-indent: -36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;"><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font>Gary Todd, Senior Accountant</font>
		</p>
		<p style="margin:0pt 0pt 0pt 36pt;line-height:100%;text-indent: -36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;"><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font>Li Xiao, Staff Accountant</font>
		</p>
		<p style="margin:13.7pt 0pt 0pt 36pt;line-height:13.75pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="text-indent:0pt;margin-left:0pt; padding-right:21pt;"><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-size:12pt;">Re:</font><font style="text-indent:0pt;margin-left:0pt; padding-right:4pt;text-align:left"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;font-size:12pt;">AXT, Inc.</font></font>
		</p>
		<p style="margin:0pt 0pt 0pt 72pt;line-height:13.7pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;font-size:12pt;">Form 10-K for Fiscal Year Ended December 31, 2015</font>
		</p>
		<p style="margin:0.15pt 0pt 0pt 72pt;line-height:13.75pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;font-size:12pt;">Filed March 11, 2016</font>
		</p>
		<p style="margin:0pt 0pt 0pt 72pt;line-height:13.7pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;color:#000000;font-size:12pt;">File No. 000-24085</font>
		</p>
		<p style="margin:12pt 0pt 0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Ladies and Gentlemen:</font>
		</p>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">AXT, Inc. (the &#x201C;</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-size:12pt;">Company</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&#x201D;) is submitting this letter in response to comments from the staff (the &#x201C;</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-size:12pt;">Staff</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&#x201D;) of the Securities and Exchange Commission in a letter dated November&nbsp;22, 2016 (the &#x201C;</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-size:12pt;">Comment Letter</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&#x201D;) with respect to the above referenced Form 10-K for the Fiscal Year Ended December 31, 2015 (the &#x201C;</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-size:12pt;">2015 Annual Report</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&#x201D;) filed on March 11, 2016 (File No. 000-24085).&nbsp; </font>
		</p>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">For your convenience, the Staff&#x2019;s comments set forth in the Comment Letter have been reproduced in bold and italics herein with responses immediately following each comment.&nbsp;&nbsp;References to &#x201C;we,&#x201D; &#x201C;our&#x201D; or &#x201C;us&#x201D; mean the Company or its advisors, as the context may require.</font>
		</p>
		<p style="margin:0.05pt 18pt 0pt 0pt;line-height:27.6pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Form 10-K for Fiscal Year Ended December 31, 2015 </font>
		</p>
		<p style="margin:13.7pt 54pt 0pt 0pt;line-height:13.9pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Item 7. Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations </font>
		</p>
		<p style="margin:13.95pt 0pt 0pt;line-height:13.65pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Results of Operations, page 38 </font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 1.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">We note that the decrease in fiscal 2015 revenue is attributed to several distinct factors, including decreases in sales of GaAs and Ge substrate materials, decreases in sales of raw materials, increases in sales of InP substrates and raw materials price weakness. To assist investors in understanding the significance of the factors you cite, in future filings, please quantify the impact of the individual factors contributing to the change in revenues. Also, quantify the impact of changes in prices and changes in volume. Refer to Item 303 of Regulation S-K and SEC Release No. 33-8350 for guidance.</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;font-size:12pt;">&nbsp;</font></p></td></tr></table></div>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment, and, in future filings, the Company will include product revenue disclosure quantifying </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">the impact of the significant </font></p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;">
		<p><font size="1"> </font></p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"><p style="margin:12pt 0pt 0pt;line-height:100%;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;"><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">individual factors contributing to the change in revenues, such as sales of </font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">substrate products and raw materials products,</font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;"> and the impact of significant changes in prices and significant changes in volume</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">.</font>
		</p>
		<p style="margin:13.95pt 0pt 0pt 3.6pt;line-height:13.15pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Provision for Income Taxes, page 42</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;color:#000000;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;color:#000000;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 2.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">We note the significant impact of the foreign tax rate differential and the overall low foreign effective tax rate in Note 13 on page 81. In future filings, please disclose and explain your foreign effective tax rate, including the primary taxing jurisdictions where your foreign earnings are derived, the relevant statutory rates and the impact of tax holidays.</font></p></td></tr></table></div>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment, and, in future filings, the Company will include appropriate disclosure regarding </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">our foreign effective tax rate, including the primary taxing jurisdictions where our foreign earnings are derived, the relevant statutory rates and the impact of tax holidays</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">.</font>
		</p>
		<p style="margin:0pt 0pt 0pt 3.6pt;line-height:27.35pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Item 8. Financial Statements and Supplementary Data <br />Note 13. Income Taxes, page 80</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;color:#000000;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;color:#000000;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 3.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">You disclose that you benefit from various tax holidays in China. In future filings please describe the factual circumstances of those tax holidays, identify the expiration dates and disclose the aggregate dollar and per share effects of the arrangements. Refer to Staff Accounting Bulletin Topic 11.C.</font></p></td></tr></table></div>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment, and, in future filings, the Company will include appropriate disclosure regarding </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">the factual circumstances of various tax holidays in China from which the Company benefits, the expiration dates of such tax holidays and aggregate dollar and per share effects of such arrangements</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">.</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;color:#000000;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;color:#000000;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 4.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">We refer to the income tax rate reconciliation presented on page 81. In future filings please revise the item &#x201C;foreign rate differences&#x201D; to separately disclose its material components, including the effects of differing statutory rates, tax holidays and any other material components. Refer to Rule 4-08(h) of Regulation S-X.</font></p></td></tr></table></div>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment, and, in future filings, the Company will revise </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">the item &#x201C;foreign rate differences&#x201D; </font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">to include appropriate disclosure regarding </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">the separate material components of such item, including the effects of differing statutory rates, tax holidays and any other material components</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">.</font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;color:#000000;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;color:#000000;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 5.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">In future filings please present a tabular reconciliation of unrecognized tax benefits for each annual period presented in your financial statements. Refer to ASC 740-10-50-15A.</font></p></td></tr></table></div>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment, and, in future filings, the Company will </font><font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;">present a tabular reconciliation of unrecognized tax benefits for each annual period presented in our financial statements</font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">.</font>
		</p>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
			<font style="display:inline;"></font></p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;">
		<p><font size="1"> </font></p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"><hr align="center" style='background-color:#000000; border-width:0; color:#000000; height:2pt; lineheight:0; width:100%;'></hr><p style="page-break-after:always">&nbsp;</p></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"></div><div style="margin-left:11.7647058823529%;margin-right:11.7647058823529%;"><p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;font-size: 11pt;"><font style="display:inline;"></font>
		</p>
		<p style="margin:13.95pt 0pt 0pt 3.6pt;line-height:13.15pt;vertical-align:baseline;color:#000000;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;color:#000000;font-size:12pt;text-decoration:underline;">Note 15. Segment Information and Foreign Operations, page 83 </font>
		</p>
		<div style="width:100%"><table style="width:100%;" cellpadding="0" cellspacing="0"><tr><td style="width:0pt;"><p style="width:0pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 100%;text-indent:36pt; display: inline;">
			<p style="line-height:100%;color:#000000;font-family:Calibri;font-size: 12pt;margin:12pt 0pt 0pt;">
				<font style="margin:12pt 0pt 0pt;line-height:100%;color:#000000;font-family:Calibri;font-size:12pt;;;padding:0pt 26pt 0pt 0pt;"> 6.</font>
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-weight:bold;font-style:italic;color:#000000;font-size:12pt;">You disclose throughout the filing that your products currently include indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge) substrates used to produce semiconductor devices and that you also sell raw materials through your participation in majority- and minority-owned subsidiaries and joint ventures. Please tell us how you considered the product line disclosure from ASC 280-10-50-40.</font></p></td></tr></table></div>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">The Company respectfully acknowledges the Staff&#x2019;s comment and advises the Staff that it considered and evaluated the requirements of ASC 280-10-50-40, which requires a public entity to report the revenues from external customers for each product and service or each group of similar products and services unless it is impracticable to do so.&nbsp;&nbsp;With respect to the 2015 Annual Report, the Company determined that all of its products constituted a group of similar products.</font>
		</p>
		<p style="margin:0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">In response to the Staff&#x2019;s comment and in light of our recent review of the requirements of ASC 280-10-50-40, the Company has determined that going forward its products can be considered to be two groups of similar products: substrate products and raw materials products.&nbsp; The Company considers its substrate products to be a group of similar products because they are compound or single element specialty material substrates that are sold to technology companies of a similar nature by the same sales force.&nbsp;&nbsp;The Company considers its raw materials products to be a group of similar products because they are raw materials that are used in manufacturing substrates or for other purposes that are sold to a group of similar customers, which includes the Company, by a separate sales force.</font>
		</p>
		<p style="margin:0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">In future filings, the Company will include product revenue disclosure for its substrate products and raw materials products.</font>
		</p>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-align:center;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">* * * * *</font>
		</p>
		<p style="margin:12pt 0pt 0pt;line-height:100%;text-indent:36pt;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">If you have any questions or comments regarding this letter, please do not hesitate to contact me.</font>
		</p>
		<p style="margin:12pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Sincerely,</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;text-decoration:underline;">/s/ Gary L. Fischer<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;text-decoration:underline;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;text-decoration:underline;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font></font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Gary L. Fischer</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Chief Financial Officer and Corporate Secretary</font>
		</p>
		<p style="margin:0pt 0pt 0pt 234pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">&nbsp;</font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">cc:<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font>Morris S. Young, Chief Executive Officer, AXT, Inc.</font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Donna M. Petkanics, Wilson Sonsini Goodrich &amp; Rosati, P.C.</font>
		</p>
		<p style="margin:0pt;line-height:100%;font-family:Calibri;font-size: 12pt;">
			<font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;;font-size: 12pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display:inline;font-family:Times New Roman,Times,serif;font-size:12pt;">Nick Steiner, Burr Pilger Mayer, Inc.</font>
		</p>
		<p style="margin:0pt 0pt 10pt;font-family:Calibri;line-height:115%;font-size: 11pt;">
			<font style="display:inline;">&nbsp;</font>
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