IQE secures major outsourcing contract with leading RF component manufacturer

04 Nov 2004

IQE plc (“IQE” or “the Company”)

IQE secures major outsourcing contract with leading RF component manufacturer
 

Bethlehem, PA. 3rd November 2004: IQE's North American subsidiary, IQE Inc, today announced it has secured a major outsourcing contract to supply a leading North American RF Component Manufacturer with epitaxial materials for its RF based components used in mobile handsets. The agreement, which is effective from 1st November 2004 and is for a minimum term of two years, renewable annually thereafter, provides for IQE's Bethlehem site to supply more than 90% of the customer’s anticipated demand for their advanced RF wafer products and is estimated to be worth around US$25 million in revenue to IQE over the initial two year period. As a result of the agreement, internal wafer manufacture at the customer’s site will cease. Both parties have been working closely together for several years; a relationship through which IQE has gained a high degree of confidence in its own ability to service the outsourced epiwafer needs of major manufacturers.

IQE's President & CEO, Drew Nelson said "This agreement with such a prominent global supplier of RF components for the cellular phone market demonstrates a clear movement towards the outsourcing model within the compound semiconductor industry. Their selection of IQE as the primary partner, as a result of our large and comprehensive production capacity, and low cost structure, endorses the Company's commitment to the outsource model"

A spokesman for the customer commented: "outsourcing certain products and services such as the manufacture of our RF epitaxial wafers allow us to concentrate our efforts on the processes that add significant value to our product offering within the global, highly competitive RF market place and we are pleased to build on previous work we have undertaken with IQE. This agreement will allow us to be one of the most highly cost effective players in the RF component marketplace"
 

For further details please contact:
Chris Meadows, IQE plc +44 29 2083 9400
Steve Gergar, IQE Inc +1 610 861 6930



Notes to Editors:

About IQE: IQE is a leading outsource supplier of customised epitaxial wafers and compound semiconductor substrates to the global semiconductor industry. Materials produced by the Group operate at the forefront of technology, typically in high speed electronics and optical systems for a diverse range of devices including those used for data/audio/visual storage, optical communications, wireless and RF devices and systems as well as an increasing range of automotive, medical and industrial applications.