Cardiff-based chipmaker IQE plans IPO for Taiwanese subsidiary

British chipmaker IQE plans to list its Taiwanese operating subsidiary on the Taiwan Stock Exchange, and use the proceeds to invest in growth.

The Cardiff-based company, which makes epidemiology wafers for use in laser hair removal and facial recognition sensors in iPhones, told investors it would sell a minority stake in IQE Taiwan and retain control of the business after the IPO.

IQE did not say how much money it hoped to raise from the IPO, but said the proceeds would be “used across the group to fund (its) growth strategy.”

Américo Lemos, CEO, said: “A successful IPO of IQE Taiwan will allow us to maximize the value of our assets while continuing to offer a secure and resilient supply chain for our global customers.”

IQE Shares rose 9.7 percent to 32.15 pence in early trading on Tuesday, taking their one-year gains to 61.8 percent.

The Apple supplier narrowed its losses from £75m in 2022 to £26m last year as global supply chain issues and weaker demand hit its bottom line.

Executives say the company is well positioned for sustainable growth despite economic challenges, as global demand for chips continues to rise amid the AI ​​boom.

The group expects to report revenues of “at least” £65m when it reports its interim results in September, representing year-on-year growth of around 25 per cent.

Lemos said: “This is an exciting opportunity for IQE and will accelerate investment in our growth strategy as we capitalise on the market opportunities ahead.”