IQE rockets after securing new manufacturing plant in US
IQE, the Cardiff-based supplier of semiconductor wafers, has agreed to takeover the in-house manufacturing facilities of American firm RF Micro Devices (RFMD).
IQE, the Cardiff-based supplier of semiconductor wafers, has agreed to takeover the in-house manufacturing facilities of American firm RF Micro Devices (RFMD).
The deal produced a big boost in IQE's share price on Wednesday; by 08:42 the stock had risen 15.8%.
In essence, IQE will receive, but not pay for, a 150,000-square foot facility in North Carolina which is already set up to make the wafers which are used in things like smartphones and sat-nav equipment.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In return, IQE will provide discounts on contracts for RFMD, which needs the wafers for the microchips it manufacturers. It's easier for RFMD to outsource the manufacturing than do it in-house because the unit costs come down and the speed of delivery increases.
Dr Drew Nelson, the President and Chief Executive of IQE said of the deal: "This landmark agreement with RFMD, one of the true global leaders in the wireless semiconductor industry, provides us with a significant step up in our manufacturing capacity, bringing substantial financial and scale benefits to the group. This is a clear win-win for both organisations."
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%
Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the US
Medium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.