IQE plc : IQE's Wireless Business Unit renews major contract with Tier 1 Customer <Origin Href="QuoteRef">IQE.L</Origin>

IqeAnnouncement

11/01/2016 12:10

Cardiff, UK, 11  January 2016 - IQE plc (AIM: IQE; "IQE", the "Group") the
leading manufacturer of advanced semiconductor wafer products to the global
semiconductor industry, announces that it has successfully renegotiated its
long-term supply contract with its premier Tier 1 Customer for the supply of
wafer products used in wireless applications. The Group estimates that the
contract will contribute more than USD55 million of revenue during 2016. 
 
 The new supply contract guarantees IQE at least 75% of the customer's demand
for epiwafers that are produced using its metal organic chemical vapor
deposition (MOCVD) platform.  It will also see  an expansion in terms of
additional products from its molecular beam epitaxy (MBE) platforms.  This
contract renewal underlines the strength of the long-term customer
relationship that IQE has developed over many years, having consistently been
recognised as one of the customer's best performing suppliers. 
 
 IQE's Wireless Business Unit continues to leverage its global manufacturing
facilities to fulfill this supply contract from its North American facilities
in Massachusetts and Pennsylvania, as well as its manufacturing site in
Taiwan. 
 
 The contract covers epiwafer products for radio frequency (RF) applications
including power amplifiers (PAs), low noise amplifiers (LNAs) and switches
used in a myriad of connected devices such smartphones, tablets, PCs, routers,
satcoms and other Internet of Things (IoT) devices. 
 
 Dr Drew Nelson, IQE CEO and President, said: 
 
 "Wireless products continue to represent a key part of IQE's core business.
This Tier 1 Customer is a global leader in Wireless connectivity solutions and
our long term supply contract demonstrates a strong commitment to IQE.  It
also confirms our position as a technology leader and the number one choice
for advanced semiconductor products for wireless applications." 
 
 Daily Hill , Head of IQE's Wireless Business Unit  added: 
 
 " We view this contract revewal as confirmation that our continuous
improvements in technology,  process control and  operational excellence
deliver best in class epiwafer products, quality and service.  Global
adoption of 4G/LTE and WiFi systems continues and this majority supply
contract is testimony to the world-leading performance which IQE products
provide for current and next-generation wireless applications " 
 
 Contacts: 
 
 IQE plc +44 (0) 29 2083 9400 
 Drew Nelson 
 Phil Rasmussen 
 Chris Meadows 
 
 Canaccord Genuity (Nomad and Joint Broker) + 44 (0) 20 7523 8000 
 Simon Bridges 
 Cameron Duncan 
 
 Peel Hunt (Joint Broker) +44 (0) 20 7418 8900 
 Richard Kauffer 
 Euan Brown 
 
 Capital Access Group +44 (0) 20 3763 3400 
 Simon Courtenay 
 Harry Rippon 
 
 NOTE TO EDITORS 

 
 ABOUT IQE 
 
 www.iqep.com 
 
 IQE is the leading global supplier of advanced semiconductor wafers with
products that cover a diverse range of applications, supported by an
innovative outsourced foundry services portfolio that allows the Group to
provide a 'one stop shop' for the wafer needs of the world's leading
semiconductor manufacturers. 
 
 IQE uses advanced crystal growth technology (epitaxy) to manufacture and
supply bespoke semiconductor wafers ('epiwafers') to the major chip
manufacturing companies, who then use these wafers to make the chips which
form the key components of virtually all high technology systems. IQE is
unique in being able to supply wafers using all of the leading crystal growth
technology platforms. 
 
 IQE's products are found in many leading-edge consumer, communication,
computing and industrial applications, including a complete range of wafer
products for the wireless industry, such as mobile handsets and wireless
infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite
communications; and optical communications. 
 
 The Group also manufactures advanced optoelectronic and photonic components
such as semiconductor lasers, vertical cavity surface emitting lasers (VCSELs)
and optical sensors for a wide range of applications including optical fibre
communications, optical storage (CD, DVD, BluRay), thermal imaging,
leading-edge medical products, pico-projection, finger navigation ultra-high
brightness LEDs, and high efficiency concentrated photovoltaic (CPV) solar
cells. 
 
 The manufacturers of these chips are increasingly seeking to outsource wafer
production to specialist foundries such as IQE in order to reduce overall
wafer costs and accelerate time to market. 
 
 IQE also provides bespoke R&D services to deliver customised materials for
specific applications and offers specialist technical staff to manufacture to
specification either at its own facilities or on the customer's own sites. The
Group is also able to leverage its global purchasing volumes to reduce the
cost of raw materials. In this way, IQE's outsourced services, provide
compelling benefits in terms of flexibility and predictability of cost,
thereby significantly reducing operating risk. 
 
 IQE operates a number of manufacturing and R&D facilities across Europe, Asia
and the USA. The Group also delivers its products and services through
regional sales offices located in major economic centres worldwide. 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: IQE plc via Globenewswire 
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