News

18 October 2006

 

European RF wireless chip foundry takes on IQE as preferred external supplier of epi-wafers

Epiwafer foundry IQE, which has manufacturing facilities in Cardiff and Milton Keynes, UK and in Bethlehem, PA, USA, has signed a Memorandum of Understanding with a European RF wireless chip foundry. IQE did not name the customer, but did confirm that the agreement relates to the supply of epi-wafers for use in the customer’s RF wireless switch products.

According to the agreement, the customer will use IQE as its preferred external supplier of epi-wafers, to complement its own in-house epi-wafer capacity. IQE says it anticipates that any increase in epi-wafer requirements beyond the customer’s internal capacity will be supplied by IQE.

Drew Nelson, CEO of IQE plc, said: “IQE is very pleased to announce a new outsource arrangement with another leading supplier of RF chips to the global wireless industry, having worked closely with the customer over the last twelve months to achieve fully ‘qualified supplier’ status. We will be working closely with the customer to fully realise all the benefits of such an outsource arrangement to enable significant commercial benefits to accrue to both parties. Again, this demonstrates the strength of the outsource model, which is now becoming a key part of customers strategic considerations.”

In August, IQE completed its acquisition of Emcore Corporation Inc's Electronic Materials Division (EMD), for $16m (an initial payment of $13m, plus $3m payable in four equal quarterly payments subject to 7.5% interest per annum).  See related item.

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