IQE raises share capital, comments on outlook
However, the company has seen recent signs of progress and has achieved several important contract wins. At the start of November, two major Asia-Pacific customers for laser epiwafers for optical storage applications (both CD and DVD) placed orders with IQE Europe for initial pilot production quantities, and have indicated a production ramp through 2004.
IQE also said that while the optoelectronics market for communication devices has remained depressed for a considerable period, a number of customers are now indicating that inventory burn will be largely complete by the middle of 2004. Re-ordering is expected to begin to start in that time-frame.
IQE’s US subsidiary, IQE Inc, has been qualified over the last 12 months by four key players in the wireless component supply chain that supply directly to handset manufacturers. However, visibility throughout the supply chain still remains relatively poor.
As pressure on costs throughout the supply chain intensifies, IQE Inc hopes that this will lead to further significant outsourcing opportunities with key players.
IQE’s substrate manufacturing subsidiary, Wafer Technology, is seeing increasing demand for higher margin products such as InP and InSb, and is currently expanding some parts of its manufacturing organization.
Also, IQE Silicon Compounds’ strained silicon product has recently been selected by two major silicon chip manufacturers to run through their leading-edge chip processes on an evaluation basis, including a sub-100 nm process. As part of a major development program recently agreed with one of the leading chip manufacturers, IQE will have access to device and circuit results from an advanced chip process.
Over the next 9-12 months, IQE expects that collaboration with major chip manufacturers will help improve its strained silicon product, with the goal of becoming qualified on a leading edge chip process in that time-frame.
IQE companies all meet ISO 9001:2000 standards
IQE plc has also announced that each of its four wholly owned subsidiary companies have successfully completed the transition to the new international standard for quality, ISO9001:2000.
The four companies within the IQE group specialize in different but complementary product sectors and each has been independently assessed and recommended for accreditation to the new standard in their own right.
IQE Silicon Compounds Ltd was the first to gain accreditation to the new standard in 2001, Wafer Technology Ltd and IQE Inc successfully made the transition earlier this year and IQE Europe Ltd has now completed the set.