Recently, Aixtron released its financial performance report for 2023 and the fourth quarter. Despite a generally sluggish external environment, Aixtron achieved substantial growth in orders, sales, and profits for the year, driven by new G10 series equipment and other product advancements.
Record-Breaking Orders, Revenue, and Profits in 2023
For the full year of 2023, Aixtron reported total revenue of €629.9 million, a 36% increase from €463.2 million in 2022. Annual orders reached a record €6.41 billion. The gross margin improved from 42% in 2022 to 44%, while EBIT (earnings before interest and taxes) rose by 49.76% to €156.8 million, with the EBIT margin growing from 23% in 2022 to 25%.

Conversely, Aixtron’s free cash flow for 2023 was -€109.7 million, primarily due to increased accounts receivable, higher expenditures on new plant construction and equipment investments, and additional inventory to support future sales.
In November last year, Aixtron began construction on a new R&D center in Heinsberg, Germany, with a total investment of approximately €100 million (about RMB 760 million). The research center will use state-of-the-art facilities and technologies for MOCVD equipment development. The first batch of equipment systems is expected to be moved into the center in the second half of this year, with project completion anticipated by early 2025.
In addition to the new R&D center, Aixtron continues to advance its development of new equipment. During the reporting period, the company’s R&D expenses increased, reaching €87.7 million in 2023, up 52% from 2022.

Record Q4 Performance Fueled by GaN/SiC and Micro LED Equipment Sales
In the fourth quarter, Aixtron’s revenue reached a historic high of €214.2 million, driven by sales of GaN/SiC power electronics and Micro LED equipment. This represents a 30% quarter-over-quarter increase and a 17% year-over-year rise, approximately three times the revenue of Q1 2023. The gross margin held steady at 46%, up 1 percentage point from the same quarter last year. EBIT for the quarter was €63.4 million, reflecting growth both quarter-over-quarter and year-over-year, although the EBIT margin was slightly lower than in 2022, at 30%.
G10 Series Gains Recognition, High Growth in GaN/SiC Equipment Sales
In terms of equipment application, Aixtron’s equipment sales totaled €532.3 million in 2023, increasing its share of total revenue from 82% to 85%, largely due to sales of GaN/SiC power electronics equipment.
GaN/SiC power electronics sales grew to €396 million, with its share of equipment revenue soaring from 42% in 2022 to 75%. Meanwhile, revenue from optoelectronic equipment was €66 million, decreasing its share to 12%. LED equipment, including Micro LED, generated €60 million in revenue, representing 11% of equipment sales.
Aixtron’s equipment sales growth benefited significantly from the superior performance of its new MOCVD equipment, the G10-AsP and G10-GaN. The G10-AsP, built on Aixtron’s planetary reactor technology, is targeted at Micro LED and laser applications, while the G10-GaN supports large-scale production of GaN devices, improving material uniformity, extending uptime, reducing footprint, and lowering wafer costs by more than 25%.
The G10 series has been well received by the market, with growing demand following its launch. The CVD equipment G10-SiC, introduced in 2022, has also gained market acceptance, accounting for one-third of Aixtron’s equipment sales in 2023.

Regional Market Analysis
Regionally, due to a decline in sales in Taiwan, Aixtron’s share of the Asian market fell from 68% to 50%. In contrast, revenue shares for the Americas and European markets increased to 20% and 30%, respectively.
Outlook
Looking ahead to Q1 2024 and the full year, Aixtron expects revenue to decline to €100 million to €120 million in Q1, but anticipates continued strong demand for its equipment to support stable and growing annual performance. For 2024, Aixtron forecasts full-year revenue between €630 million and €720 million, with a gross margin of 43% to 45% and an EBIT margin of 24% to 26%.
Furthermore, Aixtron predicts that by 2025, its performance will benefit from increased demand for GaN/SiC products and stable sales in the optoelectronics sector, driving further growth in equipment sales.
Disclaimer: The views and opinions expressed in this article are those of the original authors and do not necessarily reflect the official policy or position of MiniMicroLED Insights . While we strive to ensure the accuracy and reliability of the information provided, the content on this website may include translations, re-edited versions of second-hand information, or information derived from unverifiable sources. MiniMicroLED Insights makes no representations or warranties, express or implied, regarding the completeness, accuracy, or timeliness of such content. The information in this article is for informational purposes only and should not be construed as professional advice. Any reliance you place on such information is strictly at your own risk. To the fullest extent permitted by law, MiniMicroLED Insights disclaims all liability for any direct, indirect, incidental, consequential, or punitive damages arising out of your use of, or reliance on, the information contained in this article.
Copyright Notice: This article may include translated and re-edited content derived from various online sources, including websites and social media platforms. While we strive to credit the original authors and sources to the best of our ability, we may not always be able to verify the original source of the content. All rights to the original content remain with the original author or source publication. Where applicable, this content is reproduced for educational and informational purposes under the fair use doctrine. If you believe any content on this site infringes upon your intellectual property rights, or if you are the copyright owner and believe we have not credited you correctly, please contact us at minimicroled.business@gmail.com. We will investigate and take corrective action, including removing or properly crediting the content if necessary.
Content sourced and adapted by MiniMicroLED Insights (Doris).