IQE (IQE) highlighted increased VCSEL (vertical-cavity surface-emitting laser) wafer demand for mass-market consumer applications as part of a trading update that sent its share price up by nearly a fifth. IQE, a supplier of wafer products to the semiconductor industry, expects to deliver revenues of around £70m for the first half, reflecting increased sales in each of its three primary markets. The board has now approved a capacity expansion plan to meet higher levels of expected demand for the second half of next year.
As part of this expansion, the group has agreed leasehold arrangements for new premises in South Wales. The 11-year lease provides the infrastructure needed for the expansion in what the company terms “a highly cost effective manner”. In parallel, IQE has placed orders for new MOCVD (Metal-Organic Chemical Vapour Deposition) equipment.
