British chipmaker IQE sees shares soar despite semiconductor slowdown
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IQE shares moved sharply higher after the British chipmaker told investors that cost cutting efforts had helped lift profits ahead of expectations. The Cardiff-based firm, which makes epi-wafers for use in laser hair removal and facial recognition sensors in iPhones, has seen trade hampered by weakness in global semiconductor demand.
But IQE said on Thursday it had confronted 'macro headwinds' with 'focused cost control and improved operational performance'. The group now expects to post revenues of £118million and adjusted earnings before nasties of £7.5million for 2024, ahead of market consensus of £115million and £5million, respectively.
IQE shares were up 7.3 per cent to 13.26p in early trading, having lost roughly 37 per cent over the last 12 months and almost 75 per cent over the last five years. IQE launched a strategic review of its assets in November as part of efforts to bolster its capital position, amid 'slower than anticipated recovery in key sectors driven by weak consumer demand in end markets'.
Analysts suggest an AI-driven boost to smartphone demand could lift IQE's fortunes. The review includes a broadening of the proposed initial public offering of its Taiwan operations to include 'all strategic options', including a full sale - rather than the minority stake it would have retained under previous plans.
