IQE’s CEO departure highlights recent challenges in the semiconductor market.
- Americo Lemos has stepped down with immediate effect, after leading the firm since 2022.
- IQE shares have sharply declined amidst concerns over market recovery.
- Despite solid sales in September, the company’s valuation has dropped significantly.
- Interim leadership has been established as IQE seeks a permanent CEO.
IQE, a prominent Welsh semiconductor manufacturer, finds itself navigating challenging times as its chief executive, Americo Lemos, has stepped down with immediate effect. This leadership change comes in the wake of a substantial decline in the company’s share value. Lemos, who had been at the helm since 2022, departs amidst a broader downturn in the semiconductor market, illustrating the difficulties the sector is currently facing.
The company’s shares have been on a downward trajectory for several months, a situation exacerbated by concerns about the pace of recovery in the semiconductor market. Despite the company reporting a robust increase in sales during September, these results have not stemmed the decline in investor confidence, with the share price dropping 32% since last Friday to 12.08p as of Wednesday morning.
Before his departure, Lemos had expressed ambitions to list IQE’s Taiwan subsidiary on the local stock exchange, citing the region’s strong competitive benchmarks and favourable valuations for the industry. Lemos had stated, “The Taiwan Stock Exchange is where we have the best competitive benchmark to what we do, the investor base there are very familiar to what we do and the valuations in the TSE are among the best in the world for our industry.” He believed that the proposed IPO would bolster IQE’s diversification strategy by providing significant cash resources.
In the interim, IQE’s chief financial officer, Jutta Meier, has been appointed as the interim CEO while the search for a permanent successor is underway. Furthermore, the company’s chair, Phil Smith, will transition to a non-executive director role, with Mark Cubitt stepping in as executive chairman. Smith reassured stakeholders, saying, “In Mark and Jutta we have two excellent individuals with the necessary sector and leadership skills to capture that growth in partnership with our customers, employees and broader stakeholders.”
The immediate focus for Meier and Cubitt will include executing the short-term pipeline, generating cash across the group, and pursuing the IPO of the Taiwan business. These initiatives are expected to unlock embedded value in the company. Additionally, there will be efforts to optimise IQE’s asset base, ensuring resources are allocated effectively to align with the company’s strategic areas of expertise.
IQE’s leadership transition underscores the challenges faced by the semiconductor industry, as the company seeks stability and growth amid market uncertainties.
