IQE wins contract extension as sole supplier to major US wireless component manufacturer
26 June 2008
IQE plc (AIM: IQE) (“IQE” or the “Group’) is pleased to announce that its Pennsylvania based business unit has been awarded a multi-year contract extension as sole supplier of GaAs based pHEMT epi-wafers to a major US wireless component manufacturer. The contract extension, which is with an existing IQE customer, is valued at approximately US $20 million in revenue over the next two years and is a long term agreement designed to support the customer’s planned growth over the coming years. The contract also extends the coverage of IQE’s range of other products.
The GaAs based pHEMT epi-wafers are manufactured using the Group’s advanced Molecular Beam Epitaxy (MBE) tools and provide the enabling technology for mobile handsets and other wireless communication devices.
Steve Gergar, VP and General Manager of IQE’s Bethlehem PA business said: “The extension of this contract by a major player in the RF/wireless components arena demonstrates a great deal of confidence in IQE’s ability to support its customers, particularly during periods of high growth.”
Dr Drew Nelson, President and Group CEO added: “IQE’s continued status as sole supplier to one of the world’s leading wireless components manufacturer shows the growing commitment by the industry towards outsourcing and confirms the strength of IQE’s business model. It is also testament to the quality of service provided by IQE over the last few years and strength of relationship that the customer feels confident in extending their business with IQE.”
IQE plc (+44 29 2083 9400)
College Hill (+44 20 7457 2020)
Noble & Company Limited (+ 44 20 7763 2200)
Panmure Gordon (UK) Limited (+44 20 7459 3600)
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ABOUT IQE www.iqep.com
IQE plc is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications. It is able to provide a 'one stop shop' for the wafer needs of the world's leading compound semiconductor manufacturers, who in turn use these wafers to make the chips which form the key components of virtually every high technology system.
IQE has particular focus on the growing global wireless sector for applications including; mobile handsets, wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS and satellite communications; as well as for the optical communication sector including; optical storage (CD, DVD), laser optical mice, laser printers & photocopiers, thermal imagers, leading-edge medical products, bar-coding, high efficiency LEDs and advanced solar cells.
The manufacturers of these chips are increasingly seeking to outsource wafer production to specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms including Metal Organic Vapour Phase Epitaxy (MOVPE) and Molecular Beam Epitaxy (MBE) and the Group is able to leverage its global purchasing volumes to reduce the cost of raw materials.
IQE also provides bespoke R&D services to deliver customized materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. This is backed by a strategy of duplicating each key product processes over multiple sites to assure customers of security of supply as well as provide compelling customer benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.
IQE operates six manufacturing facilities; two in Cardiff and one in Milton Keynes in the UK; two more in Bethlehem, Pennsylvania and Somerset, New Jersey in the USA; and its most recent acquisition in Singapore. The Group also has 11 sales offices located in major economic centres worldwide.