One of Wales' leading technology firms, IQE, has confirmed a redundancy round.
An IQE spokesman said: "IQE currently employs over 200 people in South Wales. We have recently undertaken a small amount of restructuring of less than 20 roles, having increased head count over the past two years.
"The company has also had over 100 contractors employed in building its state-of-the-art mega foundry in Newport, demonstrating our commitment to manufacturing in the area."
An employee who didn't want to be named said: "I feel let down after being told by the company they were going to invest more in the IT team to be told later they were going to change direction and get ride of the IT team.
"As employees, it looks like a kick in the face."
IQE's compound semiconductor wafer technology go into chips that power applications from aerospace to healthcare, as well as mobile phones - where it is powering facial recognition sensors in the new Apple iPhone.
Last week the London Stock Market listed firm announced it had taken full ownership of CSDC, which was formed in 2015 in a joint venture between its Singaporean subsidiary, MBE Technology Pte (51%), WIN Semiconductors Corp (25%), Nanyang Technological University (18%) and individuals of the NanYang University (6%).
It was established as a vehicle for the development and commercialisation of compound semiconductor technologies for academic and industrial customers based on Molecular Beam Epitaxy (MBE) technologies in Asia.
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By taking the operation under 100% ownership, IQE said it is best placed to:
Take the necessary steps to restructure the operation, which is currently loss-making as a result of under-utilisation of assets and property lease obligations; and
Pursue Asian market sales opportunities for MBE-based products to return the operation to profitability.
The acquisition is for a nominal $1 fee to WIN Seminconductors and $1 (Singaporean) each to other third-party shareholders. For the year to December 31, 2018, CSDC recorded net losses of $8.9m (Singaporean).
IQE’s chief executive, Dr Drew Nelson, said: “In the current geopolitical context, Singapore represents a strategically significant site for IQE. The capabilities of the CSDC team and skills availability in that location, coupled with proximity to Asian chip customers and OEM (original equipment manufacturers), provide a strong opportunity to contribute to IQE’s global growth opportunities.
“With 100% control, IQE will be best positioned to address the current financial position and secure the strategic direction of the operation.”
Last month London Stock Market listed IQE’s reported pre-tax losses of £3.7m for the six months to the end of June this year. In 2018 the firm posted a pre-tax profit of £6.6m.
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It came after it had issued a profits warning over the summer, blamed on the decision of the US government to ban US firms from dealing with Chinese mobile phone giant Huawei, with the resulting impact on global supply chains.
Revenue was down 9%, to £66.7m, year-on-year. However, IQE said that second-half revenues are expected to represent between 52% and 58% of full-year revenues.
As such, given the additional contribution against a largely fixed cost base, a return to adjusted operating profitability is expected in H2.
IQE’s share price, which in July last year had hit the dizzy heights of more than 170p, has fallen significantly to just over 60p presently, giving it a market capitalisation of £484m.