IQE (IQE); responds to action taken by the Bureau of Industry and Security

Published on 24-05-2019 07:28:34
Author Sparks Team

Having added Huawei Technologies and 68 of its affiliates to its entity list, The Bureau of Industry and Security of the US Department of Commerce will prohibit sales to Huawei by certain IQE customers.

The company has highlighted its supply relationships with multiple non-US customers, so it can adapt to mid- to long-term share shifts at both the component (chip) and OEM levels. The majority of IQE’s technologies and supply chains are not affected by the ban, and IQE complies fully with the Export Administration Regulations (EAR).

IQE supplies epitaxial wafers to multiple chip companies in global supply chains, some of whom supply Huawei.

The company believes it may experience some delay to orders and the potential for adjustment of supplier managed inventory levels, predominantly in its wireless business unit. The company estimates that its current maximum risk exposure to this matter is less than 5% of total FY2019 revenue guidance.

Dr Drew Nelson, CEO of IQE, commented: “We believe the ban will have a limited impact on our mid to long term revenue trajectory. Indeed, the breadth of IQE’s current product range, the new materials technologies being introduced to market over the coming months and years, and IQE’s global manufacturing footprint are powerful mitigating factors in dealing effectively with the ongoing changing geopolitical landscape in our industry.”

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