Iqe Share Discussion Threads

[sweenoid] 28/5/2024 13:15

On the subject of AI driven growth - grab this from Cloud Light ( acquired by our long term Photonics partner/ customer Lumentum recently -ongoing 50% growth per annum due to its transceivers enabling intra- data connection of multiples of ( mainly) Nvidea GPU chips. Here is an interesting easy to understand article.



Of course this once again ties in with IQE’s recent announcement



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[sweenoid] 28/5/2024 12:51

Thanks Smorales
How frustrating
I was wrong- please keep us informed when dockets go through.

No point asking IQE any more questions, this is going to be a marathon. I believe that IQE has to defend itself against what appears to be blatant theft of its IP, they have to go through the US ‘process’ which is written by lawyers for lawyers and paradoxically delays justice, I guess it’s another example of ‘liberal democracy’ not doing what’s its set out to do 🤨

More positively the growth in silicon carbide and GAN power markets looks very encouraging asIQE do both but are majoring on the latter especially with its advantage being the 1st with 8 inch wafers which obviously reduced the cost per chip to its foundry and fabless customers



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[hutchmeister] 28/5/2024 11:07

Thanks Smorales. It's so blatant that Tower are drawing this out, all IQE responses are very quick and Tower consume all the limits, for example waiting the maximum time allowed before filing their opening brief. Two years in and such little actual legal progress, this still has such a long way to go!

[smorales] 28/5/2024 09:34

sweenoid - LLOL's assumption that it rumbles on is correct - latest filing from Tower was last week.

Note that the current appeal just relates to whether all of IQE's claims can be heard, and this needs to be sorted before the main case commences. So all a long way from being resolved.

Have saved the recent document listing FYI

[lord loads of lolly] 27/5/2024 15:29

sweenoid - I don’t think sub-judicy / NDA considerations would prevent IQE from telling investors the matter had been resolved. All it would mean is they couldn’t spell out HOW it had been resolved, nor the sums involved.

So to me it sounds like the litigation rumbles on. And with it the fees.

[sweenoid] 27/5/2024 13:22

You didn’t miss it because it’s not there and theCEO’s response to my question “what’s going on” was “can’t respond due to sub- judicy and NDA issues” if anyone can work out where the legal expenses for 2023 is accounted for then you deserve a medal

Methinks that this has reached a stalemate in the court proceedings ( last mention was 10th January) and is going to be decided out of court with compromises from both sides. The interminable legal system in the USA may be the issue too, lining the pockets of both legal teams-amazingly as it may seem investors may never be told the outcome?..
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[jimboyce] 27/5/2024 09:45

Cannot see any reference to the legal case in the annual accounts, unless I missed it.

[sweenoid] 27/5/2024 09:41

Really good news ✅
Read the whole article - Display week is THE biggest and most prestigious technology showcase for microleds and the whole ‘display’ industry so this shows industry wide recognition of our strategic partners technology



I like this paragraph best

Porotech founder and CEO Tongtong Zhu said:” “We are very honoured that our industry’s hard work has gradually grown and prospered. This honour belongs to all our Porotech partners! In the future, we will continue to promote the mass production of MicroLED microdisplays and truly implement the concept of ‘MicroLED for everyone, everywhere, every device “.” Count IQE in as a pivotal partner.

[myshareinfo] 26/5/2024 10:52

Sweenoid I was thinking about the case where IQE maintained that they are the majority / primary sourcing partner for VCSEL wafers for apple even after coherent started competing with us. IQE always maintained the status that their share of VCSEL wafer to apple is always retained.

Also from the article I mentioned, it is clear coherent revenues went up from 15m to 105m when they started shipping wafers to apple(after apple injected 450m approx into coherent). This is a massive improvement of the revenues (Also its not clear if is compounded revenue or 2023 revenues alone).

This makes me wonder, IQE being a primary sourcing partner for VCSEL wafers for apple, the revenues should improve proportionally. Also the original growth estimate from IQE regarding the VCSEL's is approx 65% YOY I believe. But we don't see that kind of growth.

What the question is how does IQE, the primary partner of VCSEL wafers for apple has less revenues compared to the secondary partner coherent and yet retain the majority VCSEL provider share for apple?

Hope it made sense. If not leave it as I mind started wandering thinking how does coherent exit contribute to the IQE. thanks

[lord loads of lolly] 26/5/2024 10:28

Sweenoid - the 166 page annual report reminds me of an election manifesto. Full of impressive promises & figures which will, history suggests, bear little relation to the outcome.

Personally, I’ve better things to do on my bank holiday weekend than plough all the way through it to find a single sentence you take issue with. So why don’t you just tell us instead.

[sweenoid] 26/5/2024 09:15

What ARE you talking about?! You are well meaning but have got confused, fair does it is complicated!

Nobody has commented on the annual report which is a comprehensive document indeed? I have a big issue with one sentence wonder if anyone else picks it up. I shall contact IQE re my query.
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[myshareinfo] 26/5/2024 08:01

From coherent not supplying apple any more, IQE and Sony are the two suppliers I believe. I think IQE demo'd small form factor VCSEL sometime back which is under the screen. So it's safe to assume we will continue to provide apple with next generation sensors then. Hope this results in good revenues. Surprisingly coherent revenues picked up from 15m to 105m after apple supplies, unfortunately IQE's revenues didn't pickup in the same proportion or size. Yet IQE claims it is the primary sourcing partner to apple from vcsel perspective with majority share. Only IQE can explain this I guess

[myshareinfo] 26/5/2024 07:44

FYI

www.techradar.com/pro/obscure-startup-unveils-record-breaking-led-display-that-would-be-perfect-for-the-next-apple-vision-pro-q-pixel-delivers-highest-resolution-color-display-squeezing-a-whole-4k-screen-into-something-barely-bigger-than-a-thumbnail

I wonder who will they source the wafers from?

[myshareinfo] 26/5/2024 07:31

FYI

www.telegraph.co.uk/business/2024/05/25/british-microchip-plant-faces-closure-apple-pulls-plug/

[crosswires] 24/5/2024 08:40

Yeah still in the running, although I am not expecting it and I think as investors we would be better off taking that view and being pleasantly surprised if a grant did come to fruition. Clearly Americo thinks it is a possibility, as he has employed someone at a not inconsiderable expense tasked with doing their bidding…

As someone said last week though, I wonder how many firms that are not American (albeit employ some Americans and supply their military) will get meaningful awards? Would be interesting to see some stats on the recipients once the grant process is complete.

I saw an RNS this morning and then thought “Damn, just the AGM”! Still think holding on to 33-35p will be tough in the short term, summer months often show a drifting market and revenue news is almost certainly required now to move us higher. Maybe some “feel good” generated by the coming Labour landslide on the premise that they can’t be any worse than the current lot 🤷🏼‍♂️

[peterbrock] 24/5/2024 08:26

Thanks for the link nickwild!!

[peterbrock] 24/5/2024 08:21

An extract from the CNBC news site. It looks like IQE are still in the mix for a grant.
Sorry but I couldn't find a way to send the link.


'One such supplier in talks with Commerce for a CHIPS award is IQE, a U.K.-based company that produces compound semiconductor wafers for major companies like Apple.

IQE chief executive Americo Lemos told CNBC that while he understands the interest in funding leading-edge chip manufacturing in order to build out artificial intelligence systems, funding smaller companies that play support roles is just as crucial to ensuring the U.S. chip supply chain is both secure and resilient.

“We need to make sure that we continuously look at the supply chain as a whole, in an environment where geopolitics aren’t easy to deal with,” Lemos said in an interview.

“Of course the industry is focused on AI, GenAI and its benefits and applications, but it’s not enough to build high performance chips,” he continued. “There’s no AI without compound semiconductors—;very simple.”

With the remaining grant money dwindling, forthcoming awards will be smaller than the multi-billion-dollar packages that have been doled out so far, Schmidt said. But for small companies, even a modest award could have significant impact.

“There’s a lot that a smaller amount of money can do for those upstream projects,” said Jimmy Goodrich, senior advisor for technology analysis with the RAND Corporation. “There’s a lot of runway left.”

[longtallsally] 23/5/2024 17:53

So Nvidia results won’t help the SP, guess we’re hoping for a July TU and that Americo has set us up for over achieving against the market expectations going forward.

[tomduck] 23/5/2024 09:23

Crosswires, i agree 100% which is why I was buying so heavily under 30p. Nvidia and AI are transforming the landscape, it is a new Industrial Revolution.

[crosswires] 23/5/2024 09:03

Some interesting snippets from Nvidia earnings call a few paragraphs below …

Markets very excited about Blackwell which ships this year but also Nvidia say they plan to bring out a new exponentially better chip each year for the foreseeable. Seems to me that it won’t be long before Nvidia is the largest company in the world via MC.

My take away from this is that IQE has been in the wrong place at the wrong time repeatedly since 2017 but would have to shoot itself in both feet not to take advantage of this coming explosion in the need for CS. Of course it’s possible they don’t execute but I think on balance with Americo on board I think the odds are favourable and we should start to hear about a revenue uptick at the latest by the September forward earnings guidance

It’s also worth noting that Amazon, Google, Meta and Microsoft have all signalled they plan to spend $200bn this year on chips and data centres needed to train and operate their AI systems. Apple has said it will announce its AI strategy next month. Nvidia is seen as the leading provider of chips best-suited to powering AI.

Data centre rev up a staggering 427% yoy


Nvidia president Huang comments…

“The industry is going through a major change. Before we start Q&A, let me give you some perspective on the importance of the transformation. The next industrial revolution has begun.

Companies and countries are partnering with NVIDIA to shift the trillion-dollar installed base of traditional data centers to accelerated computing and build a new type of data center, AI factories, to produce a new commodity, artificial intelligence.

AI will bring significant productivity gains to nearly every industry and help companies be more cost and energy efficient while expanding revenue opportunities. CSPs were the first generative AI movers. With NVIDIA, CSPs accelerated workloads to save money and power. The tokens generated by NVIDIA Hopper drive revenues for their AI services. And NVIDIA cloud instances attract rental customers from our rich ecosystem of developers.

Strong and accelerated demand -- accelerating demand for generative AI training and inference on Hopper platform propels our Data Center growth. Training continues to scale as models learn to be multimodal, understanding text, speech, images, video and 3D and learn to reason and plan.

Our inference workloads are growing incredibly. With generative AI, inference, which is now about fast token generation at massive scale, has become incredibly complex. Generative AI is driving a from-foundation-up full stack computing platform shift that will transform every computer interaction.

From today's information retrieval model, we are shifting to an answers and skills generation model of computing. AI will understand context and our intentions, be knowledgeable, reason, plan and perform tasks.

We are fundamentally changing how computing works and what computers can do, from general purpose CPU to GPU accelerated computing, from instruction-driven software to intention-understanding models, from retrieving information to performing skills, and at the industrial level, from producing software to generating tokens, manufacturing digital intelligence.

Token generation will drive a multiyear build-out of AI factories. Beyond cloud service providers, generative AI has expanded to consumer Internet companies and enterprise, Sovereign AI, automotive, and health care customers, creating multiple multibillion-dollar vertical markets.”
.

The above is why I also invested in the UK Semi ETF (based on the UsA SOX index) just over a year ago, and it’s already up over 140% since with no signs of dipping.

[a0469514] 23/5/2024 08:43

I just read Nvidia's results presentation and conference call (available on Seeking Alpha for example). It is truly mind blowing.There is a revolution going on out there and as Sweenoid says, it could be transformational for IQE.Xylos

[ardent8] 23/5/2024 08:41

Have we got any fingers in any pies in south Korea?www.breakingthenews.net/news/details/62097353

[jimboyce] 23/5/2024 07:20

As markets prepare for AI stocks earnings this week, it's a great moment to remember the critical role compound semiconductors play in the advancement of #AI.

At IQE, we have been investing in our technology portfolio to enable more efficient transfer of data in data centers, which are vital to generative AI applications. The AI boom, and gen AI in particular, are trends driving industry growth.

Americo I day ago

[longtallsally] 22/5/2024 21:35

Nobody bet against Nvidia that I know but I look forward to benefiting big time as Confucius, I mean Sweenoid says 😂

Nvidia up between 2-4% after hours, so not the share surge we saw last few earnings beats, because a lot is priced in already BUT if any of this drops into IQEs coffers I will be well pleased and we should hear about it in a July TU 😉