Contract extension

10 June 2009

IQE plc (AIM: IQE, “the Group”) the leading manufacturer of advanced semiconductor wafers to the global semiconductor industry, is pleased to announce the extension of a major contract from leading US semiconductor manufacturer TriQuint Semiconductor (Nasdaq: TQNT) for IQE’s Gallium Nitride (GaN) wafer products.
IQE's New Jersey operation will continue to sub-contract to TriQuint alongside BAE Systems and Lockheed Martin following TriQuint's recent announcement that it had been awarded leadership of Phase III of a multi-year gallium nitride (GaN) research and development contract by the US Army Research Laboratory (ARL). The contract, funded by the Defence Advanced Research Projects Agency (DARPA), was awarded based on TriQuint and its partners surpassing Phase II goals.
The overall program is designed to develop new high power, wideband GaN MMICs for a range of defence and aerospace applications. TriQuint Semiconductor will use IQE’s GaN based HEMT (high electron mobility transistor) wafers to support its new product development for these applications. IQE will provide epitaxial growth of GaN HEMT materials to support TriQuint’s MMIC work under the DARPA Phase III program.
Gallium Nitride power amplifiers and MMICs offer much higher power capability, efficiency and greater protection against electromagnetic radiation than existing solid-state amplifier technologies commonly used today, providing significant benefits in terms of both performance and lower overall system costs.
Cathy Lee, TriQuint’s Phase III program manager said:
TriQuint is very excited to continue its leadership of a highly qualified team in the development of this technology. In Phase II, we developed a high performance, reliable gallium nitride process with excellent reproducibility and high yield. We have enjoyed a close working relationship with IQE throughout Phase II of this program and this latest order is based on their solid support of us throughout that relationship.
Alex Ceruzzi, VP and General Manager of IQE’s New Jersey facility commented:
The continued relationship between IQE and TriQuint is a key demonstration of IQE’s ability to provide world class materials across a broad RF product portfolio, including emerging technologies such as gallium nitride epitaxial wafers. We appreciate the continued trust that TriQuint has placed in us to meet their needs as part of the team for Phase III of this programme.
IQE’s New Jersey facility is the leading GaN HEMT epi foundry, and provides a complete portfolio of RF products, ranging from high volume HEMTs, HBTs and BiFETs to advanced GaN based products.
(see also

Technical/Sales: IQE RF +1 732 271 5990 Ivan EliashevichShiping Guo
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Chris Meadows


Note to Editors IQE is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading semiconductor manufacturers.
IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers ('epi-wafers') to the major chip manufacturing companies, who then use these wafers to make the chips which form the key components of virtually all high technology systems. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.
IQE's products are found in many leading-edge consumer, communication, computing and industrial applications, including a complete range of wafer products for the wireless industry, such as mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite communications; optical communications, optical storage (CD, DVD), laser optical mouse, laser printers & photocopiers, thermal imagers, leading-edge medical products, barcode, ultra high brightness LEDs, a variety of advanced silicon based systems and high efficiency concentrator photovoltaic (CPV) 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 also provides bespoke R&D services to deliver customised 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. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way IQE's outsourced services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.
IQE operates six manufacturing facilities located in Cardiff (two) and Milton Keynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in the USA; and Singapore. The Group also has 11 sales offices located in major economic centres worldwide.