One of Wales’ leading technology firms, IQE, has confirmed an £81 million investment package to support its growth plans following a strategic review of the business that explored a potential sale.
IQE, which is listed on AIM, is a leading global supplier of compound semiconductor wafer products and advanced material solutions.
The funding includes a £30 million investment by U.S. semiconductor manufacturer MACOM Technology Solutions, which is also providing a further £15 million in convertible loan notes. MACOM, which will nominate two new members to IQE’s board, recently entered into long-term supply agreements for the Cardiff-headquartered firm’s epitaxial services across multiple technologies.
The funding also includes a reinvestment of £23 million from existing convertible loan note holders. IQE has also closed a £13 million placing and retail offer at 19.8 pence per share. IQE’s share price reacted negatively, falling to under 40p, having last week traded above 70p.
The fundraising, subject to IQE shareholder approval at a general meeting scheduled for May 15, strengthens IQE’s balance sheet and capital position while supporting investment in its core technologies and long-term growth. It marks the conclusion of the company’s strategic review, which began in November 2024. A potential sale of the business did not materialise.
IQE’s technologies enable a diverse range of applications including smart connected devices, communications infrastructure, AI and data centers, automotive and industrial, and aerospace and defense.
“This proposed transaction is transformational for IQE,” said Jutta Meler, chief executive of IQE. “The investment from MACOM and other existing shareholders will provide the balance sheet strength to allow us to capitalise on the opportunities in front of us, while maintaining our unique global footprint.
“We are now better positioned than ever to execute on our growth strategy, including in key technologies such as Indium Phosphide and Gallium Nitride. We look forward to delivering value for shareholders with continued fiscal rigour and by serving our global customer base through operational excellence.”
Mark Cubitt, chair of IQE, said: “This is an incredibly exciting time for IQE. I am pleased we have concluded the strategic review after a thorough process, achieving a fantastic outcome for all stakeholders. Today’s announcement is a recognition of the intrinsic value of the company and its importance in key growth segments. This fundraise removes debt pressures and leaves the group with a capital structure to enable future growth.”
Stephen Daly, chief executive of MACOM, said: “As a longstanding customer, MACOM believes this transaction will allow IQE to realise its full potential in technology, operational execution and financial performance.”