IQE plc has raised 拢81 million, including substantial strategic investment from a US semiconductor firm, as revenue falls and losses deepen.
The Cardiff-based company is a supplier of compound semiconductor wafer products and advanced material solutions.
Following the conclusion of a strategic review, IQE announced a 拢45m strategic investment from MACOM Technology Solutions Inc. in the form of 拢30m of equity and 拢15m in new non-interest bearing convertible loan notes.聽
Concurrently, IQE and MACOM also entered into long-term supply agreements while the latter鈥檚 COO Robert Dennehy and vice president David O’Carroll will be appointed as non-executive directors of IQE.聽
鈥淭he company has entered into a side letter with the investor pursuant to which the investor will have limited consent rights,鈥� IQE said.
IQE intends to appoint a permanent CFO in due course.
The remainder of the fundraise comprised a 拢23m redemption and reinvestment of convertible loan notes by existing noteholders, as well as a 拢13m placing and retail offer.
Following the completion of the fundraise and the repayment of the group’s revolving credit facility with HSBC Bank, IQE will receive net cash inflows of 拢27.9m.
For the year ended 31st December 2025, revenue dropped almost 18% to 拢97.3m. Adjusted EBITDA plummeted 60% to 拢3.2m, with adjusted loss before tax growing from 拢22.3m in the prior year to 拢27.9m in 2025.
The firm said photonics revenue of 拢57.1m was an increase of 15% year-on-year, driven by funding releases for certain US military and defence programmes in H2 2025 and continued growth in AI and data centre-related markets.
However wireless revenue of 拢40.1m was down 40% year-on-year, reflecting uncertain macroeconomic conditions in the first half of the year and softness in mobile handset demand.
Cash and cash equivalents were 拢15.7m as at 31st December 2025, with adjusted net debt of 拢31.5m (FY 2024: 拢18.8m).
Jutta Meier, CEO of IQE, commented: “We were encouraged to see market conditions improve in the second half of the year. This reflected a positive trajectory in key sectors including photonics for AI and data centres, aerospace and defence, and wireless products for consumer electronics.
“The 拢81m fundraise from key partners is a transformational investment for IQE, giving us the balance sheet strength to invest in our future growth, while maintaining our global asset base.
“IQE is uniquely positioned as a critical enabler of the world’s fastest-growing technology ecosystems. In particular, accelerating demand for our Indium Phosphide (InP) solutions supporting data centre and AI markets is expected to be a material growth driver throughout 2026 and beyond.
“Taken together, a stronger IQE, coupled with favourable market conditions directly benefitting the business, gives me great confidence for the future.”
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