IQE PLC Iqe Plc: Iqe Announces Singapore Site Closure As Part Of Global Consolidation Strategy
30 Septiembre 2021 - 1:00AM
UK Regulatory
TIDMIQE
IQE plc
Cardiff, UK
30 September 2021
IQE announces Singapore site closure as part of global
consolidation strategy
IQE plc (AIM: IQE, "IQE" or the "Group"), the leading supplier
of advanced compound semiconductor wafer products and material
solutions to the global semiconductor industry, today announces it
has taken the decision to close the Group's Singapore site by
mid-2022. The site has been part of the IQE Group since 2006 and
manufactures epiwafers for photo detectors and radio frequency
applications using Molecular Beam Epitaxy (MBE).
The closure is aligned to the Group's strategy of consolidating
operations into strategic sites with superior economies of scale
and production flexibility. IQE will transfer the expertise, IP and
assets from Singapore to the Group's Taiwan and North Carolina
sites. This follows the announcement of the closure of the
Pennsylvania site and consolidation into North Carolina by
2024.
In combination, these actions create an optimised footprint to
pursue mass-production opportunities for wafers manufactured by MBE
including long-wavelength Photonics and advanced RF applications
for 5G.
IQE is liaising closely with the Group's key customers in Asia
to manage the transition and anticipates no material impact on
revenue guidance for FY21 as a result of this closure. Year-on-year
revenues for FY22 will reduce by circa GBP3m due to the transition.
However, annualised cash savings post closure of circa GBP4.8m will
be generated from a combination of operational costs savings and a
reduction in lease liabilities that are expected to have a
favourable annualised income statement impact of circa GBP1m.
Exceptional cash closure costs of circa GBP2.5m are anticipated to
be incurred in decommissioning the site and migrating
capability.
Tim Pullen, Chief Financial Officer of IQE, commented:
"IQE's breadth of operations across Europe, USA and Asia are a
source of significant competitive advantage. By focussing
investment in strategic sites within each of these regions and
consolidating the Group's footprint, we will optimise our ability
to generate growth from differentiated technologies, whilst
reducing costs and increasing gross margins.
I would like to recognise the outstanding contribution of IQE's
highly skilled team in Singapore. We are committed to ensuring a
smooth transition for both our staff and our customers."
Contacts:
IQE plc
+44 (0) 29 2083 9400
Phil Smith
Tim Pullen
Amy Barlow
Peel Hunt LLP (Nomad and Joint Broker)
+44 (0) 20 7418 8900
Edward Knight
Paul Gillam
James Smith
Citigroup Global Markets Limited (Joint Broker)
+44 (0) 20 7986 4000
Christopher Wren
Peter Catterall
Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822
Andy Rivett-Carnac: +44 (0) 7968 997 365
Chloe Francklin: +44 (0)78 3497 4624
ABOUT IQE
https://www.globenewswire.com/Tracker?data=9qTHZCSKmlRDe6Jp3ppxCRoLBJR-nWR8zFzBlldidyjidyKwFfJ7rDOvXrEAhXsIHaT-BGpqhCa_sn3IkLHvE7zUTvbHOIg7xLoMnvI2SkDdnop8LZgZSHHxUKzCu2seRX_BSfQnTjaHvx0xcNROhRuMXs7d55qwTBI3kPKqjpYWFWfNEX_zkNNuAlQN2pwqpZ-QjCMkmF5AxMF7uVHNe3My9ruiXNZxxnPFodSjhIk=
http://iqep.com
IQE is the leading global supplier of advanced compound
semiconductor wafers and materials solutions that enable a diverse
range of applications across:
-- handset devices
-- global telecoms infrastructure
-- connected devices
-- 3D sensing
As a scaled global epitaxy wafer manufacturer, IQE is uniquely
positioned in this market which has high barriers to entry. IQE
supplies the whole market and is agnostic to the winners and losers
at chip and OEM level. By leveraging the Group's intellectual
property portfolio including know-how and patents, it produces
epitaxy wafers of superior quality, yield and unit economics.
IQE is headquartered in Cardiff UK, with c. 670 employees across
nine manufacturing locations in the UK, US, Taiwan and Singapore,
and is listed on the AIM Stock Exchange in London.
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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