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IQE primed for expansion

The high-end wafer manufacturer is driving capacity expansion to meet expected demand

IQE primed for expansion

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.

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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.