Why invest in IQE?

IQE is the leading global supplier of compound semiconductor wafers that enable a diverse range of applications across:

  • Mobile handsets
  • Global telecoms infrastructure
  • Connected devices
  • Infra-red and sensing applications

With a 30-year, proven track record in epitaxy, IQE has invested in significant capacity in recent years to fuel anticipated growth in demand for compound semiconductors, driven by the macro trends of 5G and connected devices.

The superior performance qualities of compound semiconductors make them essential to these macro trends:

  • higher power ranges
  • higher frequency ranges
  • ability to emit and detect light

As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in this growth market with high barriers to entry:

  • Breadth of customers – IQE supplies the whole market and is agnostic to the winners and losers at chip and OEM level
  • Intellectual property portfolio – know-how and patents that produce superior quality, yields and unit economics

Where we operate

The market opportunity:

Potential overall addressable market growth of 25-30% CAGR for the next 5 years based on:

  • 5G handset opportunity:
    • next generation Power Amplifiers
    • market entry into Filters and Switches
  • 5G infrastructure – global rollout of base stations and small cells
  • 3D sensing proliferating in smartphones:
    • facial recognition
    • ‘world facing’ cameras
  • 3D sensing beyond the smartphone:
    • consumer devices
    • commercial applications
    • LiDAR
    • Lasers for high-speed datacoms

Strategic priorities:

  • Investing in the future of compound semiconductors
    • Leveraging and expanding the IP portfolio
    • Developing new products that meet commercial needs
    • Entering new markets where compound semiconductors can drive value
    • Innovating to enable miniaturisation and integration
  • Scaling up the business for growth
    • Recent expansion at key sites, including Newport and Taiwan, underpins near-term growth
    • Optionality to add further capacity to address expanding opportunities
    • Enhancing management controls, systems and processes to enable mass production
  • Expanding margins and increase operating cashflow
    • Achieving superior unit economics from superior yields and economies of scale
    • Diversifying the customer base and evolving beyond the handset and infrastructure markets
    • Increasing profitability by filling installed capacity and adding value to our customers as a materials solutions provider

Delivering shareholder value:

 

Download our investment case