IQE plc : IQE wins new multi million pound volume manufacturing agreement for photonic products
(dpa-AFX International Compact Via Acquire Media NewsEdge) Cardiff, UK. 25 June 2014: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading
global supplier of advanced semiconductor wafer products and services, has
entered into a new multi-year volume manufacturing agreement expected to be
worth in excess of £1m a year for epitaxial wafers for use in optical
The new supply agreement is with an existing key strategic customer that already
has a significant presence in the Asia Pacific region and includes the rapidly
growing market for photonics in China. The new contract increases IQE's share
with a guaranteed minimum of 80% of the customer's business, which is expected
to be worth more than £1m in additional annual revenues to IQE's photonics
Customers are increasingly seeking to ensure security of supply through entering
into long-term supply agreements to support products and devices for LTE
backbone communications for base stations, Gigabit Passive Optical Networks
(GPON) and Fibre to the Home (FTTH) at 2.5G and 10G, migrating to 100G over the
The agreement also includes scope for adding new products which are currently
undergoing qualification, such as Avalanche Photo Detectors (APDs) for high-
speed, long-reach detectors.
The new contract takes the form of a "Vendor Managed Inventory" (VMI) agreement
which enables IQE to optimise production efficiency and manage any short-term
fluctuations in demand.
Dr Drew Nelson, IQE CEO, said:
"IQE provides the key enabling technology that is helping to meet the ever
increasing demands on optical communications driven by trends such as 'Big Data'
and 'The Internet of Things.'
"As the importance of photonic applications continues to grow, customers
increasingly need to ensure security of supply to meet the needs of their
technology roadmaps and are seeking to enter into volume manufacturing
"IQE is the global leader in wafer outsourcing and is seen by its customers as
their key strategic partner to support this rapidly growing industry sector."
IQE plc +44 (0) 29 2083 9400
Andrew Joel (Technical/Sales)
Canaccord Genuity + 44 (0) 20 7523 8000
Peel Hunt + 44 (0) 20 7418 8900
Instinctif Partners +44 (0) 20 7457 2020
Note to Editors
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
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
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 storage,
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 GlobeNewswire on behalf of
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originality of the information contained therein.
Source: IQE plc via GlobeNewswire
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