One of Wales’ leading tech firms, IQE, has confirmed it has received a number of expressions of interest after confirming a strategic review of the business had been widened to include its potential sale.
The Cardiff headquartered business, a leading supplier of compound semiconductor wafer and advanced material solutions, said earlier this month that it has received an approach for the business, though stressing that no offer had been made.
However, announcing disappointing interim results, which saw revenues for the first half of 2025 of £45.3m compared to £66m, in the first half of last year, IQE confirmed that the strategic review, being overseen by Lazard, has generated more interest. The initial focus of the review was on the sale of its Taiwanese business.
It said: “On 8 September, IQE announced the expansion of its ongoing strategic review to incorporate the potential sale of the company and confirmed that it was already in receipt of an approach from a potential offeror. Additional early-stage expressions of interest have been received following the announcement. There can be no certainty either that an offer will be made nor as to the terms of any offer, if made.
“In addition, IQE continues to advance discussions relating to the sale of the group’s operations in Taiwan. Should the sale of Taiwan be concluded, it is expected that the proceeds will be used to fully repay the group’s revolving credit facility with HSBC Bank and the convertible loan notes issued in March, as well as providing IQE with cash to invest in its core operations.”
The identity of the companies or investors behind the expressions of interest have not been disclosed. US tech giant Vishay, which acquired the chipmaking facility of Chinese-owned Nexperia at Newport in 2023, said it didn’t comment on market speculation. At its Newport fab it is planning to invest hundred of millions of pounds in new silicon carbide/gallium nitride technologies creating the Ƶ’s first automotive centre of excellence.
IQE, whose wafers are found in products including the Apple iPhone, said that in the first half of this year wireless revenues were down £20m on 2024 (£18.6m compared to £38.8m). This it said reflected slow demand due to the overhang of 2024 customer inventory builds, tariff uncertainty and softness in consumer purchasing of mobile handsets.
It has also ceased manufacturing of its silicon site in Cardiff. The site’s landlord has secured a new operator for the facility. It has reduced its headcount by 10% with senior management agreeing a share swap in lieu of salary for the second half of the year.
IQE’s chief executive Jutta Meier said: “Our first half performance fell short of expectations, driven by a combination of market headwinds and the unwinding of customer inventory. Despite this, I remain encouraged by the progress we have made and our continued investment in innovation is yielding promising results. We have made significant development progress in areas that are critical to our long-term strategy, and are poised to capitalise on the opportunities in these growing markets.
Looking ahead, our operational discipline supports IQE’s long-term vision centred on sustainable growth. This is underscored by our continued strong customer pipeline, which reinforces my confidence in our diversification strategy. Additionally, I am pleased to see the increasing level of interest in our strategic review, and I look forward to updating the market on the progress we are making in due course.”
