Cardiff semiconductor firm IQE soars by a third as bosses pin hopes on recovery

Shares in a British semiconductor company that supplies Apple have soared by almost a third as bosses pin their hopes on a recovery.

Cardiff-based IQE said losses had narrowed from £75m in 2022 to £26m last year.

Semiconductor companies have suffered as supply chain issues hamper global production and demand slows due to high inflation and high interest rates.

But IQE shares rose 28.8 per cent, or 5.75p, to 25.75p, as investors cheered a more confident outlook.

IQE makes epi-wafers, a type of material used for laser hair removal and facial recognition sensors in iPhones. Bosses said it was “well positioned” for “sustainable growth” despite economic challenges.

The rebound also came despite revenue also falling by more than a third year-on-year to £115m by 2023.

The company saw stronger performance in the second half of 2023 as the artificial intelligence (AI) boom accelerates.

This stronger order book is expected to continue.

Américo Lemos, CEO, said: “I am pleased with the resilience of the business and the dedication of our people even though 2023 will be a particularly challenging year.”