IQE has reported a substantial increase in revenues, moving closer to launching an IPO for its Taiwan subsidiary.
- The semiconductor firm has seen a 26.7% rise in sales, reaching £66 million in the first half of the year.
- CEO Americo Lemos expressed strong investor interest following discussions in Taiwan.
- IQE aims to list on the Taiwan Stock Exchange’s Emerging Market Board within the first six months of the coming year.
- A notable increase in wireless technology sales offset other declines, demonstrating recovery in the semiconductor sector.
IQE, a prominent semiconductor company based in Cardiff, has announced a notable jump in revenues as it approaches the initial public offering (IPO) for its Taiwanese operations. The firm has recorded a 26.7% increase in sales, amounting to £66 million for the first six months of this year. This financial upswing coincides with their strategic plans to progress with the IPO of their Taiwan subsidiary on the Taiwan Stock Exchange’s Emerging Market Board, expected within the first half of the next year.
The company confirmed that its decision comes after receiving significant feedback from potential investors. CEO Americo Lemos shared his optimism by stating, ‘The level of appetite was very strong and I was impressed by the feedback we have received.’ Lemos also highlighted that the Taiwan Stock Exchange provides a superior benchmark for IQE’s business operations, noting the familiarity and advantageous valuations offered by the TSE for their industry.
IQE’s financial boost was significantly powered by a 73% surge in wireless technology sales, including new contract acquisitions in the Android market. This increase effectively balanced out a 4% decrease in sales within its photonics unit. The firm has also pledged to lower its labor costs by 10% over the year, indicating efforts to streamline its operations amidst evolving market conditions.
Despite the decline in its photonics segment, the company remains confident in the sector’s potential. Lemos remarked, ‘We believe the wireless space has been the strongest in terms of recovery, while photonics still remains a bit flatter in terms of end market development.’ He emphasized IQE’s strategic positioning to gain market share even within a relatively stagnant total market landscape.
However, alongside these developments, IQE shares experienced a notable decline, falling by 14% to 20.3p. As the U.S. market remains a significant territory for the company, IQE has observed varied paces of recovery across different regions and sector segments, particularly noting that wireless technology is leading the path of rejuvenation in the global semiconductor industry.
IQE’s strategic initiatives and revenue growth indicate promising prospects for its upcoming Taiwan IPO, driven by market recovery, especially in wireless technology.
