IQE plc : IQE Chosen as Key Supply Chain Partne...

Agreement with IQE Enables MACOM to Deliver GaN Performance at 200mm Silicon Cost Structure

Cardiff, UK, 01 April 2014 - IQE plc (AIM: IQE; "IQE", "the Group") has entered an agreement with M/A-COM Technology Solutions Inc. ("MACOM"), a leading supplier of high performance RF, microwave, and millimeter wave products, to deliver Gallium Nitride on Silicon (GaN-on-Si) performance with 200mm silicon cost structure.

The agreement was announced last night by MACOM  along with the introduction of an IP licensing program that will enable GaN insertion and large-scale production across the RF industry. As part of the licensing program, MACOM will make available its GaN-on-Si technology to select companies for use in RF applications.

Surety of supply is critical for high volume markets such as wireless basestations, estimated by ABI Research to represent more than 60% of the overall $1.2bn RF power market.  As a first step in its licensing program, MACOM will license to IQE the ability to produce GaN-on-Si wafers utilizing MACOM's patent-protected technology. The agreement will enable MACOM to deliver GaN RF products with breakthrough bandwidth and efficiency at a mainstream 200mm silicon cost structure and will enable IQE to accelerate GaN penetration into key target markets.

Today IQE supplies more than 50% of the world's compound semiconductor epitaxial wafers for RF applications and is already well-established as the leading provider of GaN high electron mobility transistor (HEMT) wafers for RF, broadband, and military power amplifiers.

Transistors for these applications have historically been fabricated using 3 inch and/or 100mm silicon carbide substrates. To complement these products and increase market reach, IQE has developed and demonstrated growth of GaN HEMTs on industry standard silicon substrates at wafer diameters of 100mm, 150mm, and 200mm. This technology, along with the comprehensive IP portfolio licensed from MACOM, will enable tremendous economies of scale, wafer capacity, and cost structure needed to substantially advance the GaN market.

Dr. Drew Nelson, CEO of IQE, said:

"We are beginning to see very significant traction for GaN occurring in the compound semiconductor industry, across a wide range of applications.Our partnership with MACOM allows us to further penetrate this market by bringing decades of high volume production experience to create the supply chain needed to accelerate GaN adoption. 

"Combining GaN HEMT performance with low cost and large diameter silicon substrates enables these wafers to be processed through existing high volume silicon factories. Commercial availability of GaN HEMTs on 150mm and 200mm wafers represents a significant milestone toward the widespread adoption of this technology. To date, we have already delivered MACOM 200mm diameter GaN-on-Silicon wafers, and we look forward to a powerful ongoing relationship."

John Croteau, President and CEO of MACOM, said: 

"MACOM is very excited to enter into this agreement with IQE, the recognized true world leader in compound semiconductor epitaxial supply. We believe that this Partnership achieves a critical milestone in the mainstream commericalizatin of GaN technology by establishing the manufacturing cability and capacity required to bring reilable, high volume surety of supply to the industry."

As the leading global supplier of advanced semiconductor materials, IQE has pioneered a number of GaN-on-Si technologies for applications spanning RF, power control and LED lighting markets, with a technology roadmap to support the emergence of compound semiconductors on silicon for next generation electronic devices such as microprocessors and embedded systems.

Contacts
IQE plc       [phone] Chris Meadows (Press/investors)
Drew Nelson

IQE USA      [phone]
Wayne Johnson (Technical)

NOTE TO EDITORS

ABOUT IQE

www.iqep.com

IQE is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading semiconductor manufacturers.

IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers ('epiwafers') to the major chip manufacturing companies, who then use these wafers to make the chips which form the key components of virtually all high technology systems. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.

IQE's products are found in many leading-edge consumer, communication, computing and industrial applications, including a complete range of wafer products for the wireless industry, such as mobile handsets and wireless infrastructure, Wi-Fi, WiMAX, base stations, GPS, and satellite communications; and optical communications.

The Group also manufactures advanced optoelectronic and photonic components such as semiconductor lasers, vertical cavity surface emitting lasers (VCSELs) and optical sensors for a wide range of applications including optical fibre communications, optical storage, thermal imaging, leading-edge medical products, pico-projection, finger navigation ultra-high brightness LEDs, and high efficiency concentrated photovoltaic (CPV) solar cells.

The manufacturers of these chips are increasingly seeking to outsource wafer production to specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market.

IQE also provides bespoke R&D services to deliver customised materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way, IQE's outsourced services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.

IQE operates a number of manufacturing and R&D facilities across Europe, Asia and the USA. The Group also delivers its products and services through regional sales offices located in major economic centres worldwide

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Source: IQE plc via Globenewswire

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