One of Wales ’leading technology firms, IQE, saw revenues decline by a third last year. However, the Cardiff-based firm said it is well-positioned to drive sustainable growth and win new business this year and beyond.
The leading global supplier of compound semiconductor wafer products and advanced material solutions, reported revenues of £115.3m in 2023, a decline of 31% on the previous year (£167.5m). Adjusted pre-tax losses widen from £6m to £23.2m.
Supported by cost-savings it was able to drive an improved performance in the second half of last year, which its chief executive, Americo Lemos, said would be built on this year.
He said: "I am am pleased with the resilience of the business and dedication of our people despite 2023 being a particularly challenging year for the semiconductor industry. As forecast, IQE returned to double digit growth in H2 over H1, and additionally took strategic actions to reshape our cost base as part of our ongoing commitment to improving margins and profitability.
" We made good progress against our diversification strategy following our investment into GaN (gallium nitride) capacity, with new customer design wins in the power electronics and automotive sectors. Buoyed by the ongoing industry recovery, IQE is well positioned within the global value chain to deliver sustainable growth and capture opportunities in 2024 and beyond.”
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Following the results IQE’s share price surged by more than 30%. Analysts expect its revenues for 2024 to be in the range of £133.7m.
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The London Stock Exchange listed company, whose advanced material wafers are used in products including iphones, has also struck a new multi-year agreement with long-term partner Advanced Wireless Semiconductor Company (AWSC).
IQE will supply AWSC with gallium arsenide wafers for the manufacture of smartphone power amplifier devices for its key customer Lansus - the Chinese radio frequency technology supplier. This will supply tier one China-based orginal equipment manufactuers in the Android ecosystem, in a market which is expected to return to growth following a period of inventory build-up.
Taiwen-based AWSC, a leader in the field of compound semiconductor wafer fabrication, has been a partner of IQE for more than twenty years.
Mr Lemos said: “IQE is expanding its wireless addressable market into the Android ecosystem. We are delighted with our successful partnership with AWSC and look forward to continuing as a trusted partner and growing our business together.”
Eric Huang, president of AWSC, said: “We are pleased to be building upon our relationship with IQE, a longstanding and valued partner. The quality of IQE’s products and expertise of its teams make it the ideal choice as we focus on delivering products of the highest standards to our customers on time.”