IQE plc
Cardiff, United Kingdom 30 September 2021
IQE Announces Closure of Singapore Site as Part of Global Consolidation Strategy
IQE plc (AIM: IQE, “IQE” or the “Group”), the leading provider of semiconductor wafer products and complex hardware solutions to the global semiconductor industry, today announced that it has taken the decision to close the Group’s Singapore site by mid-2022. The site has been part of the IQE Group since 2006 and manufactures epiwafers for photodetectors and radio frequency programs with molecular beam epitaxy (MBE).
The closure is aligned with the Group’s strategy of consolidating operations in strategic locations with staggering economies of scale and production flexibility. IQE will transfer Singapore’s expertise, high-level assets and assets to those of the Group in Taiwan and North Carolina. This follows the announcement of the cierre. de Pennsylvania and consolidation in North Carolina through 2024.
In combination, those movements create an optimized footprint to take advantage of the mass production opportunities of wafers manufactured through MBE, long-wavelength photonics, and complex RF programs for 5G.
IQE is working intensively with the Group’s major consumers in Asia to manage the transition and does not foresee any significant effect on the profit forecasts for fiscal 21 after this close. Annual profits for year 22 will be reduced by approximately £3 million as however, annualised money savings after the end of around £4. 8 million will be generated from a combination of savings in operating charges and relief in lease debt that are expected to have a favourable annualised effect on the source of profit. Exceptional monetary closing prices of approximately £2. 5 million are expected to be incurred for the site’s decommissioning and migration capacity.
Tim Pullen, IQE CFO, said:
“The breadth of IQE’s operations in Europe, the U. S. USA And Asia is a significant source of competitive advantage. By focusing investments in strategic locations within those regions and consolidating the Group’s footprint, we will optimize our ability to generate expansion from differentiated technologies, while cutting prices and expanding gross margins.
I would like to acknowledge the remarkable contribution of IQE’s highly qualified team in Singapore. We are committed to ensuring an elegant transition for our customers and our customers. “
Contacts:
IQE plc (0) 29 2083 9400 Phil Smith Tim Pullen Amy Barlow Peel Hunt LLP (Nomadic and Joint Agent) (0) 20 7418 8900 Edward Knight Paul Gillam James Smith Citigroup Global Markets Limited (Joint Agent) (0) 20 7986 4000 Christopher Wren Peter Catterall
Headland Consultancy (Financial Public Relations) (0) 20 38054822 Andy Rivett-Carnac: (0) 7968997 365 Chloe Francklin: (0) 78 3497 4624
ABOUT IQE
http://iqep. com
IQE is the world’s leading provider of complex compound semiconductor wafers and responses that enable a wide diversity of programs through:
combined devices
global telecommunications infrastructure
connected devices
3D detection
As a global manufacturer of large-scale epitaxy platelets, IQE occupies a position in this place of the market with the main barriers to entry. IQE materializes the entire place of the market and is independent of winners and losers at the chip and OEM level. , adding know-how and patents, produces epitaxy wafers of astonishing quality, power and unit economy.
IQE is headquartered in Cardiff, UK, with approximately 670 workers at nine production sites in the UK, US, Taiwan and Singapore, and is indexed on the London Stock Exchange AIM.