 IQE set for AI boost to smartphone demand
The global semiconductor industry typically goes through relatively short cycles of rising and falling demand.
Booming use of the wafers led to an unprecedented shortages in 2021 and 2022, before a combination of rising inflation, geopolitical tensions and a pandemic hangover led to an industry slump in 2023.
Last year showed improvement, with global semiconductor sales up 15.2 per cent year-on-year in January 2024, but the recovery proved 'uneven'.
Going forward analysts at Peel Hunt warned 'the great 'unknown' for IQE and the broader industry is 'the ongoing tariff war' and export controls brought in by the Chinese government.
But Peel Hunt said on Thursday the demand picture should improve for IQE.
'While much of the industry bellwether TSMC's buzz is on AI, its management also expects smartphones to be boosted in the coming periods via AI-driven shortening of upgrade cycles; and an AI-related increase in semis content,' it said.
'We believe this bodes well for IQE on the other side of the current cyclical downturn.' |
Let's wait and see the size, discount and terms for the convertible loan notes. I'd hazard a guess that existing shareholders are going to get shafted on this. Why a convertible and not a raise? Probably because they need cash quickly. It could be done by the end of the day. |
I'm happy with that statement - especially with the share price so low. Good to note the positive reaction to the strategic review - they just need to get all their very expensive kit making a full contribution to the bottom line. With both the USA and the UK banking and investing in data centres and artificial intelligence compute AND with the need for speed and energy efficiency compound semiconductors is the way to go. Let's hope iqe can grab some of it - I suspect the market will start to come to them. |
scars - I, too, am cautiously optimistic that 2024 may have called the bottom for now.
I wouldn't hold out any hope of Chips Act expansion though, particularly now Trump is at the helm again. Surely his team would take one look at IQE's US operations, see they're subsidiaries of a UK outfit & pronounce them ineligible for home-grown MAGA funding. That's assuming he even pursues Chips Act funding in its previous form, which looks unlikely.
My reading is that any grants at State/County level were contingent upon Federal Chips Act funding. So it's all or nothing. |
Lord, I see 2025 as a more positive year especially with greensboro end of the year, so as stated took a small position at around 12p, expecting to get back to support at around 17p at some point this year. Can't see any negatives given todays news, so as you say support around the current level is great. News later in the year on Taiwan would be a big bonus. 10% up already, 17p - 30% more great.. sounds solid to me... |
The board discussed the potential huge government Greesnboro grant many times when it first surfaced and I don’t believe it’s likely to happen over and above the small amount the county has committed to. Other than that the press release is PR copy and pasted so doesn’t really add anything to the conversation about IQE that we don’t already know. |
The article below came out on Boxing Day 26th December and details why IQE is still at the "FOREFRONT" of CRYSTA GROWTH Technology in production and development of many
Wafers(Epi- Wafers)etc ..for Chip Companies which help provide the componennts for
as they say "virtually all high technology systems". |
crosswires - I fear you're right.
But just because something's clear doesn't make it any more acceptable.
Simply shows contempt for the people paying their salaries & keeping the lights on. Shareholder loyalty works both ways.
scars - today's TU may well create a bit of support around the current level. But it'll take positive news from Taiwan or a significant profits uplift before we really "get a bit of confidence back in the sp". |
Never the less this is positive news! Expecting some kind of short to mid term share price recovery. The only way is up just need to get a bit of confidence back in the sp, |
It’s clear that after three months the board will not be discussing the CEO exit and Lemos hasn’t even updated his Linkedin apart from a cryptic “Stay tuned”. Assume there is a 6 months clause so maybe he might say something post this (although if he somehow transgressed then he clearly won’t) and there is probably an NDA anyways. All very odd as you say…
You’d think they would mention how the search for a permanent CEO was going in the update. Radio silence all round 🤷🏼‍♂️ |
Unless some major impropriety has been committed, it’s pretty much unheard of for the CEO of any PLC to be ousted overnight, without even a parting word of thanks from the Board.
Yet almost three months on, IQE remains completely tight-lipped on the subject. Apparently quite content for its shareholders to be treated like mushrooms - kept in the dark & fed on sh!t. It’s really totally unacceptable. |
Agreed no more bad news is good, although initial market reaction is muted, certainly no great recovery in business. I can see a year ahead where the share price doesn’t gain too much, unless we hear more concrete news on a Taiwan sale as predicted earnings are pretty much stagnant. As I have said before it’s one to tuck away and forget about for a while to come…
I do think we saw the bottom in terms of share price though and in a few years anyone who bought down here will be happy. |
I was a day out on the TU but at least there was no more bad news. Not much to be excited by either but then I guess that was unrealistic right now. It doesn’t seem Taiwan is imminent and certainly it might be difficult to arrange all that a listing would entail by H2 2025, but there is no rush. With the wider explosion for GaN (especially so in that region) I don’t see the value of the Taiwanese concern falling in value, only the opposite. Next year is more likely |
Hardly “fantastic news”. FY revenue just £3m above repeatedly downgraded expectations. Only marginally up on 2023, which in itself was the poorest year by far in the last five+.
It was only a couple of years ago we were told to expect a tripling of revenues by 2027!
By recent IQE standards, it seems anything that doesn’t materially undershoot & disappoint is a hugely positive surprise.
I’m delighted things are stabilising for now. But it’s not exactly a cause for great celebration yet, even if my most recent top-up purchase is finally in the money (today at least).
It sounds as though progression to a Taiwanese IPO or part/full sale is still a long way off. We’re told - despite this seemingly being a top priority - “the review remains at an early stage”. Hmmmmm. |
Positive update, as I said before probably won’t see fire works, but steady progress is all that is needed from these low levels |
Fantastic news,seems like we have at last a BOD who seem to know how to make our undervaluated assets sweat and increase shareholder value.This with the upcoming
boost from Taiwan will hopefully lead us on the path to growth
Well done to the new BOD |
Lets see how the market reacts, GLA |
As good as we could of expected. Should see a slight rise of the positivity from the trading update |
cTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). Cardiff, UK23 January 2025 Pre-close Trading Update - FY24 revenue and Adj. EBITDA expected to exceed expectations- Positive impact of cost actions evidenced IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, provides a pre-close Trading Update for the financial year ended 31 December 2024.Revenue for the period is expected to be at £118m, combined with focused cost control and improved operational performance, the Group expects Adjusted EBITDA to be at least £7.5m, exceeding expectations* and subject to external review. Strategic review and Proposed FinancingAs announced in November 2024, IQE is undertaking a Strategic Review which the Board believes will better unlock significant unrealised value within the Group. At this stage, the strategic review is focused on its Taiwan operations covering all strategic options, including IPO or a full sale. While the review remains at an early stage, the Board is encouraged by the positive levels of interest from its partners and the broader recognition that the Group is a technical leader across a variety of strategically important vertical markets, with a well-invested asset base.In addition, the Group is pleased to say it is in the final stages of concluding its proposed convertible loan note and that it has received strong support from shareholders. This process is expected to conclude shortly and an announcement will be made accordingly. A circular will be sent to shareholders providing further details and seeking their approval in due course. Mark Cubitt, Executive Chair of IQE, commented:"I am pleased that the business performance in 2024 will show revenue and adjusted EBITDA ahead of expectations. Amid ongoing macro headwinds, Jutta and the leadership team have taken effective action to refocus the Group on its core strengths and improve operational performance, resulting in an encouraging financial picture. I am really pleased by the reaction from our staff, customers and shareholders to the announcement of the strategic review, and the resulting positive engagement. In addition, the proposed financing will provide IQE with greater resilience as we continue to strengthen key customer relationships and expand further into emerging high growth areas"*As communicated on 18 November 2024, the group expected revenue to be around £115m and Adjusted EBITDA of at least £5m for the financial year ended 31 December 2024. Contacts: IQE plc+44 (0) 29 2083 9400Mark CubittJutta MeierAmy Barlow |
If IQE cannot start ramping up revenue with all this spending going on then they deserve to be taken in house somewhere. |
Getting a bit of a motor on now! Good to see, would like to see the resistance level tested at 17. Could be an interesting couple of days the way other stocks are also spiking up. |
Fingers crossed we don’t get any more bad news from a TU and also start to hear some more info on the Taiwan sale soon. From such low levels the share price will gain traction from anything positive |
would like to see it through 13 and confirm a breakout from recent trading here, GLA |
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