IQE

LN: IQE

Market Cap£259.7m

Last Close 32.3p

IQE is the leading supplier of epitaxial compound semiconductor wafers globally. The principal applications include radio frequency semiconductors, devices for optical networks, vertical cavity surface emitting lasers (VCSEL) and infrared semiconductors.

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Investment summary

IQE has commenced a long-term strategic collaboration with global contract semiconductor manufacturer and designer GlobalFoundries to develop gallium nitride-on-silicon (GaN-on-Si) technologies for mobile and wireless infrastructure applications. The goal of this collaboration will be a GaN-on-Si offering at GlobalFoundries’ Fab 9 facility in Vermont, using wafers supplied by IQE.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 140.0 16.2 (7.0) (2.46) N/A 28.4
2020A 178.0 29.9 3.2 0.29 111.4 7.3
2021E 169.5 27.4 0.1 (0.04) N/A 9.8
2022E 182.4 39.5 7.3 0.68 47.5 7.7
Industry outlook

GaN-on-Si technology potentially opens up price-sensitive applications in the wireless infrastructure market, displacing the incumbent silicon technology. The availability of GaN-on-Si becomes particularly significant as the wireless market shifts to 5G applications because not only do GaN devices consume less power and last longer than their silicon counterparts, they also enable the creation of smaller, denser arrays operating at higher frequencies. This is essential for 5G base stations, which need to be more compact than their 4G predecessors and handle the transmission and reception of multiple inputs and outputs in parallel to cope with the processing requirements of the internet of things (IoT), Industry 4.0 and autonomous vehicles.

Last updated on 20/01/2022
Content on IQE
IQE – Optimising its MBE footprint
TMT | Update | 1 October 2021
IQE – executive interview
TMT | Edison TV | 13 September 2021
View more
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Share price graph
Balance sheet
Forecast net debt (£m) 53.6
Forecast gearing ratio (%) 20
Price performance
%
1m
3m
12m
Actual 2.1 (26.6) (62.0)
Relative* (2.4) (29.3) (66.1)
52-week high/low 88.3p/31.1p
*% relative to local index
Key management
Phil Smith Chairman
Americo Lemos CEO
Tim Pullen CFO
Amy Barlow Head of Investor Relations