IQE plc : IQE to participate in €23m proje...

Cardiff, UK. 13 May 2014: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services, has joined a new consortium to establish a pan-European supply chain capability for the high volume production of vertical cavity surface emitting lasers (VCSELs) for infrared illumination, data communications, gesture recognition and industrial heating applications.

The aim of the programme is to establish a European based production capability to bring VCSEL manufacturing to a level comparable to LED and CMOS manufacturing. By bringing together existing high volume production facilities at IQE, along with key end users, the consortium will deliver an end-to-end production supply chain offering significant reduction in the cost-per-function for VCSEL devices by reducing GaAs processing costs whilst increasing device performance.

VCSELs are key enabling technologies for a wide range of applications where demand is proliferating rapidly as this advanced laser becomes the device of choice for many high volume applications including:

• Gesture recognition, for gaming and non-contact navigation (e.g. TV, smartphone, tablet)
• Depth imaging for 3D vision, using 'time of flight (ToF)' technology, driving next wave of handset innovation for must have new phones
• Production line heating automation: significant operating efficiencies can be achieved using VCSEL technology with applications requiring tens of millions of devices
• Low energy optical storage and fast switching in high capacity data centres, servers and ultra-high speed computing
• High speed datacomms, including Active Optical Cables (AOC)
• Ultra-High Density magnetic Storage using Heat Assisted Magnetic Recording (HAMR)
• Illumination for IR cameras for security, safety, night vision
• Other industrial heating applications including paint curing and commercial print shops
• Cosmetics and healthcare including hair removal, antiwrinkle, blemish reduction

IQE has already demonstrated significant advances in VCSEL technology including an established 100mm VCSEL process which has been enhanced by the recent launch of its new 150mm VCSEL wafer products for high volume applications, announced in March 2014.

The Euro 23million VCSEL Pilot Line for IR Illumination, Datacom and Power Applications (VIDaP) programme, whose partners include IQE, Philips, STMicroelectronics, Sick and Sidel, will receive funding under the European Commission's ENIAC program with IQE receiving significant support from the Welsh Government.

A key impact of the project will be for Europe to secure a leading global position in this vital and rapidly growing segment of photonics.

Dr Drew Nelson, IQE CEO, said:

"As the global leader in compound semiconductor wafer products, IQE is delighted to take part in the programme to establish a high volume end to end European production capability for this key enabling technology that will have a major impact on so many areas of our lives over the coming years and decades. 

By working with key European partners to establish full pilot manufacturing capabilities for high volume production, we will bring the same principles and economies of scale that apply to LED and CMOS processes, to photonics applications employing VCSELs.

IQE has built a powerful technology platform for VCSELs, and recent announcements on our new 150mm process coupled with achievements such as record low power consumption and record high speed data transmission rates are testament to the strength that IQE will bring to this consortium.

IQE offers a strong track record in the manufacture of compound semiconductor wafers and laser devices and the consortium also includes a number of end customers who have and will expand the design of VCSELs into their existing and new families of products. The consortium represents product commercialization across a diverse range of applications of VCSELs, demonstrating the great versatility of the technology."

CONTACTS:

IQE    ([phone])
Investors/Press:
Drew Nelson
Phil Rasmussen
Chris Meadows
Technical/Sales:
Andrew Joel


Canaccord Genuity (+ 44 20 7523 8000)
Simon Bridges
Cameron Duncan       
           
Peel Hunt ([phone])
Richard Kauffer          
Daniel Harris  
           
Instinctif Partners ([phone])
Adrian Duffield          
Kay Larsen

Note to Editors

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 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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