IQE, to invest, or not?
IQE plc is a semiconductor company headquartered in Cardiff, Wales, UK. It specializes in the design, development and manufacture of advanced semiconductor materials used in various electronic devices such as smartphones, LED lighting, solar cells, and power amplifiers for wireless communication systems. The company has a global presence with manufacturing facilities in the UK, the US, and Asia, and supplies its products to customers around the world. IQE plc is listed on the London Stock Exchange and is a member of the FTSE 250 index.
Over the past decade, the IQE plc stock price has gone through various fluctuations. The company’s stock price hit its peak in late 2017, with a value of around 176p per share. However, the stock price dropped sharply in the following months and continued to fluctuate in the following years. The COVID-19 pandemic also had an impact on the company’s stock price, with a significant drop in March 2020, followed by a gradual recovery over the subsequent months.
Overall, the past decade has seen both ups and downs in the IQE plc stock price, reflecting the volatility of the stock market and the semiconductor industry. It’s important to note that past performance is not necessarily indicative of future performance, and investing in the stock market always carries a certain degree of risk. If you’re considering investing in IQE plc or any other company, it’s important to do thorough research and seek professional financial advice before making any decisions.
Who is IQE?
IQE plc was founded in 1988 by Dr. Drew Nelson, who was then a researcher at Cardiff University in Wales, UK. Nelson had previously worked in the semiconductor industry and saw an opportunity to create a company that could develop and manufacture advanced semiconductor materials for a range of applications.
Initially, the company focused on developing and commercializing a technology known as the “epitaxial liftoff” process, which involved growing layers of semiconductor material on a substrate, then “lifting off” the layers and transferring them to a new substrate. This technology enabled the production of high-quality, thin-film semiconductor materials for use in electronic devices.
Over time, IQE plc expanded its operations and product offerings, acquiring other semiconductor companies and investing in new technologies. Today, the company is a leading supplier of advanced semiconductor materials for a range of applications, including 5G wireless communications, photonics, power electronics, and more. It has manufacturing facilities in the UK, the US, and Asia, and supplies its products to customers around the world.
IQE’s Main Competitors
IQE’s main competitors are other semiconductor companies that produce and supply advanced semiconductor materials for various electronic devices and applications. Some of the key competitors of IQE include:
- Sumitomo Electric Industries: A Japanese company that specializes in the production of semiconductor materials, including compound semiconductors and silicon carbide.
- Nichia Corporation: A Japanese company that produces semiconductor materials and components, including LEDs, laser diodes, and power devices.
- Cree, Inc.: A US-based company that designs and manufactures silicon carbide and gallium nitride-based semiconductors for a range of applications, including power electronics, LED lighting, and wireless communications.
- II-VI Incorporated: A US-based company that produces semiconductor materials and components for a variety of applications, including laser optics, solar cells, and optical communications.
- Advanced Micro-Fabrication Equipment (AMEC): A Chinese company that specializes in the design and manufacturing of semiconductor fabrication equipment, including equipment for compound semiconductor production.
These companies, along with other semiconductor manufacturers, compete with IQE for market share and customers in the rapidly-evolving semiconductor industry. IQE has differentiated itself through its focus on developing and commercializing new technologies and products, as well as its global manufacturing capabilities and customer relationships.
IQE Investment Advantages
As a leading supplier of advanced semiconductor materials, IQE plc offers several investment advantages for investors looking to gain exposure to the semiconductor industry:
- Diversified Product Portfolio: IQE has a diversified product portfolio, with offerings in various markets, including 5G wireless communications, photonics, power electronics, and more. This diversification helps to mitigate risks associated with exposure to any one specific market, and provides the company with multiple growth avenues.
- Strong Global Presence: IQE has manufacturing facilities in the UK, the US, and Asia, providing the company with a strong global presence and access to key markets around the world. This global footprint helps to mitigate risks associated with geopolitical and economic factors that may impact any one specific region.
- Strong Customer Relationships: IQE has established long-standing relationships with key customers in various markets, including many of the world’s leading smartphone manufacturers. These relationships help to provide the company with a stable revenue stream and long-term growth prospects.
- Focus on Innovation: IQE has a strong focus on research and development, with a track record of developing and commercializing new technologies and products. This focus on innovation helps to differentiate the company from its competitors and provides potential for future growth opportunities.
- Experienced Management Team: IQE has an experienced and proven management team with a track record of successfully managing the company through various market cycles. This provides investors with confidence in the company’s ability to execute on its growth strategy and navigate any challenges that may arise.
Overall, IQE’s diversified product portfolio, strong global presence, customer relationships, focus on innovation, and experienced management team make it an attractive investment opportunity for investors looking to gain exposure to the semiconductor industry. However, as with any investment, it is important for investors to conduct their own due diligence and carefully consider the risks associated with investing in the stock market.