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Opportunity created by some wider market negative crap from Bank of America which made the Kospi drop nearly 10%

It’s not just good news it’s amazing, Tower is pretty much the leading global foundry,,,, Intel, Marvell etc use Tower

Https://finance.yahoo.com/sectors/technology/articles/chinas-control-over-indium-phosphide-010212293.html

U.S. officials are reportedly pressing China over delays in indium phosphide export approvals, as the material becomes a bottleneck for AI data center buildouts.

Reuters says Coherent CEO Jim Anderson raised the issue during a U.S. business delegation trip to China in May, and it was also discussed in U.S.-China trade talks in Seoul.

FWIW: InP is critical for photonic chips used in high-speed AI infrastructure.

AXT $AXTI says InP export permits are its biggest current challenge.

Coherent $COHR warned of an InP shortage in May.

Lumentum $LITE is reportedly sold out through 2028 despite quadrupling output.

6-inch InP wafer prices are up 250% to around $5,000.

Thanks for the Nasa update, interestingly market makers are offering way over the advertised bid so the spread is much tighter than it seems for example i’m being offers £3.145 right now

Valuation metrics across the pond are entirely different to the UK investor who quite often has a tepid appetite for risk and prefers to look back rather than forward - if this were listed in the US it would be valued far greater that said it’s the US investors stalking low valued UK gems that’s lit a fire underneath it

If you take a look at the number of £100k + buys landing it seems any weakness is being bought into likely to be held for the longer term, so many catalysts lifting future growth targets besides space x but i’m going to guess this will rise from this afternoon and i’d like to think 350p becomes the floor soon

This is positive for IQE with Lumentum confirming no delays

Reporting Q3 earnings today after US close

Both the Placing and the Retail Offer are expected to be open to existing shareholders of the Company ("Shareholders") only

Anyone measuring IQE against peers won’t be selling imo…..be interesting to see if they raise guidance on 20th May….. based on LandMark’s commentary on 23rd April where they independently confirmed that global epi-wafer output is far below customer needs. In a supply constrained market, IQE’s constraint is not demand, it is reactor capacity. Every incremental reactor brought online at Newport converts directly to revenue above plan and I believe IQE have the largest global capacity

The hyperscalers are all raising capex guidance, the demand for IQE and their wafers is not cyclical and in fact the hyperscalers are saying 2027 going to be much bigger than 2026!

SLW - short term volatility is to be expected particularly as many retail sitting on substantial profit but the IQE narrative just got exponentially better and this deal will bring new longer term institutional investment which in turn will bring price stability on the march to fair value…… the US understand this market better and value quite differently based on forward metrics so todays pricing will be an opportunity that I expect will be bought into heavily

There’s a fair chance we could even close up if the US $IQEPF is anything to go by

Shines a light on UK based IQE and peaks the interest of a wider institutional and retail investment community

Circa 57p equivalent

Taiwanese and US investors understand Photonics and the semi space far better than us in the UK, take a look at Landmarks valuation compared to IQE….IQE far better and bigger yet valued at a tiny fraction

Macom at $22bn company just validated IQE big time

If the name was Nvidia and not less known Macom flags would be flying

IQEPF closed up nearly 19% following the news

Likely due to the US market understanding photonics better and the strategic value that Macom bring to IQE

Without IQE’s wafers nothing gets made and Macom just added further validation by securing their supply and Nvidia gave $2bn to Lumentum and Coherent to secure supply…..Lumentum are using the nvidia investment to build out a new fab facility and as such they will need more wafers……IQE and Lumentum recently extended their multi year supply agreement and the volume is set to increase

Average daily share price for March in the region of 24.5p so 19.8p not so bad give that context

Anyway from a strategic point of view the deal with Macom is hugely important

Roll on the next financials I think around 20th May

Now values IQE around £262m or around £276m on a fully diluted basis

Debt free, strategic supply agreements, world leader, largest capacity across the board etc etc ……too cheap and should be at many multiples of this if you look at peers

Forget the discount and look at what the deal actually brings…..look at the read across from Landmark today….this is not a small aim oil company raising money for another duster

Short term volatility as we are on aim after all but this will soon re rate

Should say $21.5b mcap

Https://ca.finance.yahoo.com/news/macom-enter-agreements-further-strengthen-160000950.html