Successful Qualifications

IQE PLC
13 December 2007

13 December 2007





IQE plc



('IQE' or the 'Group')



Successful Customer and Capacity Qualifications







IQE plc (AIM:IQE) the leading supplier of advanced wafer products and services
to the global semiconductor industry, announces the successful qualification of
products and tools with various customers across the Group. These qualifications
achieve several of the critical operational milestones set for 2007 and secure
the foundations for significant added production capacity in 2008.



During the year, the Group has successfully transferred key advanced HBT
technology for high performance Power Amplifier applications from its New Jersey
plant into its UK facility, to establish strategically important dual site
manufacturing for customers. Although taking longer than expected due to
capacity constraints at customer fabs, IQE has successfully completed key
customer product qualifications, allowing significant wafer capacity in the UK
to be brought into full production during the remainder of 2007, throughout 2008
and beyond.



In addition, new capacity installed in the New Jersey facility has successfully
qualified for BiFET production and is now ramping into full production.



The new facility acquired in Singapore in August 2007 is now fully operational
and the first tool has been successfully installed. Over the coming months, all
of the tools at the existing Singapore plant will be moved to the new facility
during their routine annual maintenance, thereby having a minimal impact on
production output. The move has progressed well and is expected to be fully
complete by Q3, 2008, to the original schedule.



Commenting, Dr Drew Nelson, IQE CEO said:



'These successful qualifications of products and tools will immediately provide
increased production output to support the growing wafer needs of our customers,
particularly in the wireless business where demand continues to be very strong.
Further, as additional tools become qualified over the coming months, our
capacity will continue to increase during 2008, exploiting our operational
gearing and enhancing IQE's position as the leading global supplier of advanced
compound semiconductor wafers.'



In a separate technical press release, IQE has today announced the publication
of results from a joint programme between IQE and Intel Corporation
demonstrating the breakthrough integration of high performance compound
semiconductor devices on silicon substrates for next generation high-speed,
ultra-low power digital logic applications (see www.iqep.com/news for further
details).



IQE expects to provide a trading update early in the New Year.


Contacts:



IQE plc ([phone])

Drew Nelson

Phil Rasmussen

Chris Meadows



College Hill ([phone])

Adrian Duffield / Ben Way



Noble & Company Limited (+ 44 (0)20 7763 2200)

John Llewellyn-Lloyd / Sam Reynolds







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 ('epi-wafers') 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; optical
communications, optical storage (CD, DVD), laser optical mouse, laser printers &
photocopiers, thermal imagers, leading-edge medical products, barcode, high
efficiency LEDs and a variety of advanced silicon based systems.



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 six manufacturing facilities located in Cardiff (two) and Milton
Keynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in the
USA; and Singapore. The Group also has 11 sales offices located in major
economic centres worldwide.



                      This information is provided by RNS
            The company news service from the London Stock Exchange