Loading...
News Article

IQE responds to US Huawei ban

News

CEO Drew Nelson believes the ban will have a limited impact on mid to long term revenue

Drew Nelson, CEO of advanced wafer firm IQE plc, has made a statement about the recent action taken by the US Department of Commerce's Bureau of Industry and Security (BIS) to add Huawei Technologies and 68 of its affiliates to what is known as the 'Entity List'.

IQE supplies epitaxial wafers to multiple chip companies in global supply chains, some of whom supply Huawei. The BIS action prohibits the sale to Huawei, by certain of IQE’s customers, of products covered by the Export Administration Regulations (EAR) absent obtaining an appropriate export license.

The situation involving the ban is dynamic and it is not clear at this time how long it will remain in force or what the full implications will be. However, Nelson believes the company is in a strong position to adjust to the possible consequences and scenarios resulting from this in a positive manner.

"The recent ban on sales of products from US companies to Huawei and its affiliates is a factor completely outside of IQE’s control. However, our long-term strategy of supplying as many of the supply chains into all major OEMs as possible, protects IQEs overall supply to a very significant degree, " he said

"As a result, we believe the ban will have a limited impact on our mid to long term revenue trajectory. Indeed, the breadth of IQE’s current product range, the new materials technologies being introduced to market over the coming months and years, and IQE’s global manufacturing footprint are powerful mitigating factors in dealing effectively with the ongoing changing geopolitical landscape in our industry."

Across all product lines, IQE has supply relationships with multiple non-US customers, so is well placed to adapt to mid to long-term share shifts at both the component (chip) and the OEM level. The majority of IQE’s technologies and supply chains are not affected by the ban and IQE complies fully with the EAR.

In the short-term, IQE believes it may experience some delay to orders and the potential for adjustment of supplier managed inventory levels, predominantly in its Wireless Business Unit. The Photonics and Infrared Business Units are essentially unaffected.

The company estimates that its current maximum risk exposure to this matter is less than 5 percent of total FY 2019 revenue guidance. Although there remains uncertainty and unpredictability related to this specific matter, given the market opportunity IQE faces in H2, the company leaves full year guidance unchanged.

×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
x
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: