UK Chip Supplier IQE Seeks Buyers After Cutting 2025 Revenue Forecast

IQE plc, a British supplier of advanced compound semiconductor wafers and an Apple supplier, has expanded its strategic review to include the potential sale of the company amid challenging market conditions. The company lowered its 2025 revenue forecast to between £90 million and £100 million, down from previous expectations of £115.1 million to £123 million, citing softness in mobile handset sales and delays in US military and defense spending. IQE is in an 'offer period' as defined by the Takeover Panel, having been approached by potential buyers, although no formal offers have been guaranteed. The company is also negotiating the sale of its Taiwan operations, with proceeds expected to repay its revolving credit facility and convertible loan notes, while providing additional capital for core operations. CEO Jutta Meier expressed confidence in unlocking value for stakeholders despite the macroeconomic uncertainties impacting contract deferrals and inventory levels. IQE is also exploring moves to diversify manufacturing locations, including shifting some production to the US to mitigate tariff impacts.