IQE's wireless business unit renews major contract

The Group estimates that the contract will contribute more than USD 55 million of revenue during 2016. The new supply contract guarantees IQE at least 75% of the customer's demand for epiwafers that are produced using its metal organic chemical vapor deposition (MOCVD) platform. It will also see an expansion in terms of additional products from its molecular beam epitaxy (MBE) platforms. IQE's Wireless Business Unit will utelise its global manufacturing facilities to fulfill this supply contract from its North American facilities in Massachusetts and Pennsylvania, as well as its manufacturing site in Taiwan. The contract covers epiwafer products for radio frequency (RF) applications including power amplifiers (PAs), low noise amplifiers (LNAs) and switches used in a myriad of connected devices such smartphones, tablets, PCs, routers, satcoms and other Internet of Things (IoT) devices. Dr Drew Nelson, IQE CEO and President, said: "Wireless products continue to represent a key part of IQE's core business. This Tier 1 Customer is a global leader in Wireless connectivity solutions and our long term supply contract demonstrates a strong commitment to IQE. It also confirms our position as a technology leader and the number one choice for advanced semiconductor products for wireless applications." Daily Hill, Head of IQE's Wireless Business Unit added: "We view this contract revewal as confirmation that our continuous improvements in technology, process control and operational excellence deliver best in class epiwafer products, quality and service. Global adoption of 4G/LTE and WiFi systems continues and this majority supply contract is testimony to the world-leading performance which IQE products provide for current and next-generation wireless applications"