IQE (IQE) , an AIM-listed supplier to the semiconductor industry, announced on Wednesday that it had kick-started initial production for a second major customer at the Newport Mega Foundry.
The Cardiff-based firm have secured the production contract, which serves the Android supply chains, for its Vertical Cavity Surface Emitting Laser or “VCSEL”, a key component in multiple current and future 3D sensor systems.
Dr Mark Furlong, Executive Vice President of Global Business Development, Photonics and InfraRed commented:
“The initiation of production for a second major customer at our Newport Mega Epi Foundry, is another important milestone in cementing Newport as the premier location globally for large scale, state of the art, VCSEL production.”
The Newport Foundry has exceeded previously attained performance levels, the firm explained, with multiple new qualifications now in long term reliability testing.
Additionally, IQE signed a contract extension with one of its largest VCSEL customers, extending the current contract until the end of 2021, alongside several other contracts in the pipeline.
Shares were up over 10% this morning following the news.
Production volumes are expected to ramp over the next few years as adoption across multiple mobile platforms and other use cases proliferate, IQE explained.
As a result, and in anticipation of its strong growth, the company has dedicated the last two years towards its investment in the worlds’ largest VCSEL epi-wafer facility in Newport, UK.
Mr Furlong added: “The availability of the large-scale production capacity which has been established over the last 18 months at Newport, and consequent improvement in production efficiency and performance, is highly valued by our customers as they address mass market adoption across multiple applications.”
This morning’s news comes after the firm outlined on Tuesday a range of new Asia-centric supply chains from which it expects significant orders.
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