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(Sharecast News) - Semiconductor wafer and advanced materials supplier IQE has entered into a strategic collaboration agreement with SK Siltron, it announced on Monday, for the development and commercialisation of compound semiconductor products.
The AIM-traded firm said the deal would formalise a strategic agreement to develop business in the Asia market, leveraging Siltron's "significant" substrate expertise with IQE's "market-leading" epitaxy capabilities.
It said the two companies would focus on developing and delivering innovative epiwafers based on gallium nitride (GaN) on silicon carbide (SiC) for radio frequency applications in the wireless communications market, and GaN on silicon for power electronics applications across a range of markets.
Combined, the markets represented a "multi-billion dollar opportunity" for GaN devices, and were forecast for strong growth in consumer, telecom and automotive applications.
"There are tremendous synergies between IQE's GaN pedigree and SK siltron's substrate offerings, and we will leverage these to bring innovative solutions to market," said chief executive officer Americo Lemos.
"Expansion in Asia is a key focus for IQE and we are excited to be partnering with a globally-recognised leader in advanced materials."
At 1120 BST, shares in IQE were up 4.38% at 36.95p.
Reporting by Josh White at Sharecast.com.
