News: Suppliers
8 September 2025
IQE expanding strategic review to potential sale of company
In a trading update for full-year 2025, epiwafer and substrate maker IQE plc of Cardiff, Wales, UK says that, as previously noted, trading in first-half 2025 was impacted by macroeconomic uncertainty and, as a result, some end-customer demand was fulfilled with existing inventory. The firm has continued to experience weakness in wireless markets, due mainly to softness in mobile handset sales, and this is expected to persist through 2025. In addition, delays to federal funding cycles in US military and defence sectors are resulting in the deferral of orders into 2026.
Accordingly, revenue for 2025 is expected to be £90–100m (down 19.5% on 2024’s £118m). Adjusted EBITDA should be between –£5m to £2m (down from 2024’s £8m). First-half 2025 revenue is expected to be at least £44m (down by a third on first-half 2024’s £66m), with –£0.4m adjusted EBITDA (compared with +£6.6m in first-half 2024). IQE will report its interim first-half 2025 results on 23 September.
Strategic review
IQE continues to believe that there is significant market opportunity because of its leading position in providing advanced compound semiconductors across several market verticals and to a base of global marque customers. The board is now expanding the scope of the previously announced strategic review to also incorporate the potential sale of the company and is seeking buyers. IQE says that it is in receipt of an approach from a potential offeror.
While the strategic review process remains ongoing, IQE is progressing negotiations with multiple parties for the sale of Taiwan operations. Should this sale be concluded, it is expected that the proceeds will be used to fully repay the revolving credit facility with HSBC Bank and convertible loan notes issued in March, as well as providing IQE with cash to invest in its core operations.
“We have updated our expectations for the full year to adjust for the deferral of certain contracts in our Wireless and Photonics segments,” says CEO Jutta Meier. “This is a result of continued global and macro uncertainty which has impacted the unwinding of customer inventory levels pre-built in 2023 and 2024, the sale of new mobile handsets and the release of budgetary spending across the US military and defence sector,” she adds. “Looking ahead, while the strategic review remains ongoing, I am encouraged by the progress we are making and remain confident in our ability to unlock value for all of our stakeholders.”
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