Our Strategy

IQE is focused upon delivering enabling technology which meets performance and price points, and which can be delivered reliably, on-time, and with the ability to scale rapidly.

Progress on Strategy

Investing in the Future of Compound Semiconductors
Strategic GoalProgress
  • Leveraging and expanding the IP Portfolio
  • Developing and launching new products
  • Targeting new market entry
  • Innovation in integration and miniaturisation
  • Full-service DFB lasers for data comms using Nano-Imprint Lithography in qualification, revenues possible in H2 2021
  • Successful development of IQGeVCSEL 150™ technology for 6” Vertical Cavity Surface Emitting Lasers (VCSELs) on Germanium (Ge), a critical step in the pathway to 8” VCSEL technology
  • Successful development of IQepiMo™ template technology for RF Filters and any application requiring low resistance buried electrodes, built on the patented cREO® technology platform
  • Strong development progress in long wavelength VCSEL technology (MBE platform) and lasers for healthcare monitoring
Scaling the Business for Growth
Strategic GoalProgress
  • Expand Group capacity
  • Qualify customers in strategic markets
  • Enhance management controls, systems and processes to enable mass production
  • Capital expenditure significantly reduced in 2020 following completion of the infrastructure phase of the capacity expansion
  • Future capex will be more linear with anticipated revenue growth
  • Closure of IQE’s Pennsylvania US site by 2024 and consolidation of US MBE development and production at the North Carolina US site announced
  • Systems transformation programme launched to provide a consistent, agile and scalable platform for business growth
  • Three new Aixtron G4 tools ordered in Q1 2021 to support volume growth for Wireless GaAs in Taiwan
Expanding Margins and Cashflows
Strategic GoalProgress
  • Superior unit economics from superior yields and economies of scale
  • Customer and market diversification
  • Intellectual property generation as a Material Solutions provider
  • Site utilisation significantly improved vs FY19 levels
  • Return to profitability as a result of additional volume and high operational gearing
  • Strong operating and free cashflow
  • Strengthened balance sheet with net cash of £2m as at 31 Dec 2020
  • Expanding IP portfolio – over 30 patents registered in 2020
  • IP portfolio successfully defended with a legal
    dispute resolved post year end including a cash
    settlement of $2.5m in favour of IQE

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*Report on strategic progress as detailed in our Annual Report and Accounts 2020.