IQE renews wireless contract with major customer
IQE plc, a manufacturer of advanced semiconductor wafers, has successfully concluded the renegotiation of a long-term supply contract with an existing tier 1 customer for the supply of wafer products used in wireless applications.
The contract, worth at least $50million, covers epiwafer products RF applications including power amplifiers (PAs), low noise amplifiers (LNAs) and switches used in smartphones, tablets, PCs and other connected devices.
The new supply contract guarantees IQE at least 75 percent of the customer's demand for epiwafers that are produced using its MOCVD platform. It will also see an expansion in terms of additional products from its MBE platforms.
Supply against the new contract will be fulfilled by IQE from its North American facilities in Massachusetts and Pennsylvania, as well as its manufacturing site in Taiwan.
Drew Nelson, IQE CEO and president, said:"Wireless products continue to represent a key part of IQE's core business. The renewal of our long term supply contract with this important key tier 1 customer demonstrates a strong commitment to IQE. It also confirms our position as the number one choice for advanced semiconductor products for wireless applications."
Russ Wagner, head of IQE's wireless business unit added:"This contract renewal, with additional market share, is a testament to the quality, and cost effectiveness of IQE's wafer products, and to the best in class levels of service we are able to deliver to our customers. The size of the contract is also clearly indicative of the continuing robust demand for compound semiconductor solutions in the wireless industry, being further driven by the adoption of 4G/LTE and WiFi on a global scale."
