IQE mulls sale of Taiwan operations amid slow chip equipment market

News | November 18, 2024

By Peter Clarke

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Epitaxial wafer supplier IQE plc (Cardiff, Wales) has announced a trading update and comprehensive strategic review of operations.

The company said that it now expects revenue for the full-year 2024 to December 31, to be flat compared with 2023 at about £115 million and an adjusted EDITDA of at least £5 million. This is due to a slower than anticipated recovery in key sectors of the electronics market, the company said.

The company added that is has engaged Lazard to help it conduct a comprehensive strategic review of its asset base and that would include the option of broadening the proposed IPO of Taiwan operations to include the option of a full sale.

Losses persist as wafer maker IQE moves towards IPO

In addition, IQE said it is negotiating a convertible loan note with Lombard Odier for up to about $15 million with a conversion price of 15p per share.

“The impact of the slow pace of recovery in the semiconductor industry can be seen across the sector and is reflected in our revenue expectations for FY24,” said Mark Cubitt, executive chair of IQE, in a statement. “Looking ahead, the strategic review, including the broader assessment of options for our Taiwan operations, will ensure we have a strong capital base to continue investing in our core business and support IQE’s long-term strategy.”

At the same time IQE is undertaking a search for a replacement CEO after the departure of the previous CEO Americo Lemos in October 2024. CFO Jutta Meier is currently serving as interim CEO and CFO.