IQE has reported a significant increase in revenues, moving closer to its Taiwan IPO plans.
- The Cardiff-based semiconductor firm has garnered positive investor interest for its Taiwan listing.
- IQE aims to list on the Taiwan Stock Exchange’s Emerging Market Board within six months.
- Sales surged by 26.7% in the first half of the year, driven by wireless technology.
- The company anticipates strong positioning amid fluctuating global semiconductor recovery.
IQE, a prominent name in semiconductor manufacturing, has reported a notable increase in revenues as it advances plans to float its Taiwan subsidiary on the Taiwan Stock Exchange. The Cardiff-based enterprise revealed that its initial interactions with investors have yielded very positive feedback, following the announcement of these plans in July.
According to IQE, the initial public offering (IPO) aims for the Taiwan Stock Exchange Emerging Market Board, with expectations to complete this process within the first half of the next year. Chief Executive Officer Americo Lemos expressed enthusiasm, highlighting strong strategic investor interest in Taiwan. He commented, “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.”
IQE’s financial performance in the first six months of the year has been encouraging, with sales increasing by 26.7% to £66 million. The firm also reported a reduction in operating losses by approximately 40%, narrowing down to £12.1 million. A significant 73% rise in wireless technology sales, including securing new contracts within the Android market, offset a slight 4% decline in the photonics division. In an effort to bolster financial health, IQE is planning to reduce labour costs by 10% over the coming year.
The global semiconductor market has shown signs of recovery, although the pace differs across regions and sectors. IQE, which counts the United States as its largest market, noted a solid recovery in wireless technology, while photonics continues to lag slightly. CEO Lemos also remarked on the company’s confidence in capturing market share even if the overall market remains static, stating, “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.”
Despite these positive developments, IQE’s share price experienced a decline, falling 14% to 20.3p.
IQE’s strategic focus on Taiwan’s IPO and revenue growth indicates potential for navigating the evolving semiconductor sector successfully.
