IQE plc: IQE announces Singapore site closure as part of global consolidation strategy
30 Septiembre 2021 - 1:00AM
IQE plc: IQE announces Singapore site closure as part of global
consolidation strategy
IQE plc
Cardiff, UK30 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 £3m
due to the transition. However, annualised cash savings post
closure of circa £4.8m 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 £1m. Exceptional cash closure costs of circa £2.5m
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 9400Phil SmithTim
PullenAmy
Barlow Peel
Hunt LLP (Nomad and Joint Broker)+44 (0) 20 7418
8900Edward KnightPaul GillamJames
Smith Citigroup
Global Markets Limited (Joint Broker)+44 (0) 20 7986
4000Christopher WrenPeter
Catterall
Headland Consultancy (Financial PR) + 44
(0) 20 38054822Andy Rivett-Carnac: +44 (0) 7968 997 365Chloe
Francklin: +44 (0)78 3497 4624
ABOUT IQE
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.
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