PM4430 Jun 2018 15:56
Another Dave Sweeny post
Qorvo and Skyworks our 2 biggest customers at present, use our 'wireless' products , and will provide the core provisions for the expansion of the IOT and 5G , Qorvo are also important in GAN. Both had nothing but positive things to say, in terms of outlook for these very important markets .. or for the growth of 4G in the meantime :-) which of course IQE supply them for. The sheer complexity and possibilities of 5G opens a massive door for IQE to increase its share of the front- end component share, especially in the filters,which we KNOW IQE is targeting for the next upgrade ( 4.5G , global roaming, LTE smartphone market), what they both said is very very positive for IQE, also since our presence in Smartphones ( before the iPhone X ) is limited at present to the RF PA ( power amplifier) , upgrades up the smartphone cycle favour us, the more complex and advanced the phone, the MORE CS ( compound semiconductor) material is needed...that's what we do! The smartphone market is showing no signs of weakness and at last we are in a new innovation cycle driven by Apple, shortly followed by the entire Android community.
Well it's now common knowledge that Apple have introduced 3D sensing to the world with iPhone X, where Apple goes, everyone follows, Himax confirmed that ALL the biggest Android vendors plan to introduce 3D sensing into their highest range models in 2018- the issue they have is getting enough 3D sensing modules, Himax can't produce enough, I believe their customers will DEMAND VCSELS and not inferior EE lasers, win- win IQE.
ALL the producers of the VCSEL component of 3D sensing modules , which in effect means Lumentum and Finisars and Himax, highlight the HUGE demand for these modules for smartphones and most importantly other applications as well.They simply cannot make enough to supply demand, IMHO this means IQE as the ONLY - repeat- ONLY volume producer of VCSELS is in the driving seat in terms of pricing and supply, this is why I believe they have a direct arrangement, at least in part, in the supply of VCSEL wafers directly with Apple.
The comments from data centre suppliers have been mixed, and this is because it is becoming evident that the hyperscale customers whose demand is insatiable are slowly but surely decreasing their suppliers and becoming more selective, Optoelectronics for instance were dropped by Amazon, a huge customer for cloud and data storage demand, so their SP tanked. It's the industry demand IQE investors should be concerned about , because IQE is the lead supplier, if cloud and data are surging , so will our business...and it indeed is growing+++ for the obvious reason that everyone is storing text, photos and video in the cloud. When, not if, AR becomes mainstream, the implications for cloud applications and storage are HUGE, superb for IQE.
AR - augmented reality is going to become the next BIG huge innovation with Apple likely leading the way - a win- win, slam-
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