Our Strategy
IQE is focused upon delivering enabling technology which meets performance and price points, and which can be delivered reliably, on-time, and with the ability to scale rapidly.
Progress on Strategy
| Investing in the Future of Compound Semiconductors |
|---|
| Strategic Goal | Progress |
- Leveraging and expanding the IP Portfolio
- Developing and launching new products
- Targeting new market entry
- Innovation in integration and miniaturisation
| - Full-service DFB lasers for data comms using Nano-Imprint Lithography in qualification, revenues possible in H2 2021
- Successful development of IQGeVCSEL 150™ technology for 6” Vertical Cavity Surface Emitting Lasers (VCSELs) on Germanium (Ge), a critical step in the pathway to 8” VCSEL technology
- Successful development of IQepiMo™ template technology for RF Filters and any application requiring low resistance buried electrodes, built on the patented cREO® technology platform
- Strong development progress in long wavelength VCSEL technology (MBE platform) and lasers for healthcare monitoring
|
| Scaling the Business for Growth |
|---|
| Strategic Goal | Progress |
- Expand Group capacity
- Qualify customers in strategic markets
- Enhance management controls, systems and processes to enable mass production
| - Capital expenditure significantly reduced in 2020 following completion of the infrastructure phase of the capacity expansion
- Future capex will be more linear with anticipated revenue growth
- Closure of IQE’s Pennsylvania US site by 2024 and consolidation of US MBE development and production at the North Carolina US site announced
- Systems transformation programme launched to provide a consistent, agile and scalable platform for business growth
- Three new Aixtron G4 tools ordered in Q1 2021 to support volume growth for Wireless GaAs in Taiwan
|
| Expanding Margins and Cashflows |
|---|
| Strategic Goal | Progress |
- Superior unit economics from superior yields and economies of scale
- Customer and market diversification
- Intellectual property generation as a Material Solutions provider
| - Site utilisation significantly improved vs FY19 levels
- Return to profitability as a result of additional volume and high operational gearing
- Strong operating and free cashflow
- Strengthened balance sheet with net cash of £2m as at 31 Dec 2020
- Expanding IP portfolio – over 30 patents registered in 2020
- IP portfolio successfully defended with a legal
dispute resolved post year end including a cash
settlement of $2.5m in favour of IQE
|
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*Report on strategic progress as detailed in our Annual Report and Accounts 2020.
