IQE Regulatory News (IQE)

IQE and BLUGLASS enter into a strategic partnership to develop a range of electronic applications.

Cardiff, 29 November 2016:  IQE plc (AIM: IQE, "IQE" or the "Group"), the leading manufacturer of advanced semiconductor wafer products for the global semiconductor industry, has announced that it has entered into a formal Collaboration Agreement with BluGlass Limited (ASX: BLG).

The 15 month joint R&D agreement is an exclusive arrangement whereby IQE and BluGlass agree to collaborate to develop technology for high quality III-N films deposited by Remote Plasma Chemical Vapour Deposition (RPCVD) on both Si and cREO™ on Si templates.

The agreement effectively couples IQE's world-leading technology position in advanced semiconductor materials with BluGlass' technical expertise in RPCVD.

Dr. Rodney Pelzel, VP, IQE Group Technology commented:

 "We are extremely pleased to announce our collaboration with BluGlass. BluGlass' world leading RPCVD technology is highly complementary to IQE's existing technology portfolio, and the collaboration is a key step in overcoming challenges inherent to epi-growth of cutting edge materials.

"This arrangement marks another key milestone for IQE as it continues to explore ways to expand its technology portfolio in order to provide market leading solutions to its customers. This arrangement comes on the heels of our announcement earlier this year of successful transfer of cREO™ epi capability to IQE's North Carolina manufacturing site. IQE remains committed to fully exploiting cREO™ technology for III-N as well as other III-V and group IV materials. This collaborative arrangement is a key step in furthering this technology."

BluGlass Managing Director, Giles Bourne said:

"We are delighted to have formed a strategic partnership with IQE, one of the world's leading compound semiconductor foundries, supplying many of today's leading semiconductor manufacturers.

"We have chosen to work with IQE, based on the enormous market potential and impact that the applications that we will be co-developing could have on the semiconductor industry in the future. IQE is committed to cutting-edge innovation and their diverse product portfolio makes them a very compelling partner to be working with."

CONTACTS:

IQE Press/Investors: Chris Meadows cmeadows@iqep.com

IQE Technical: Rodney Pelzel rpelzel@iqep.com

BluGlass Media: Stefanie Winwood swinwood@bluglass.com.au

About IQE

http://iqep.com

IQE is the leading global supplier of advanced semiconductor wafers with products that cover a diverse range of applications, supported by an innovative outsourced foundry services portfolio that allows the Group to provide a 'one stop shop' for the wafer needs of the world's leading semiconductor manufacturers.

IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers 'epi-wafers' to the major chip manufacturing companies, who then use these wafers to make the chips which form the key components of virtually all high technology systems. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.

IQE's products are found in many leading-edge consumer, communication, computing and industrial applications, including a complete range of wafer products for the wireless industry, such as smartphones and wireless infrastructure, Wi-Fi, base stations, GPS, and satellite communications; optical communications, optical storage, printing, thermal imagers, leading-edge medical products, barcode, ultra high brightness LEDs, a variety of advanced silicon based systems and high efficiency concentrator photovoltaic (CPV) solar cells.

The manufacturers of these chips are increasingly seeking to outsource wafer production to specialist foundries such as IQE in order to reduce overall wafer costs and accelerate time to market.

IQE also provides bespoke R&D services to deliver customised materials for specific applications and offers specialist technical staff to manufacture to specification either at its own facilities or on the customer's own sites. The Group is also able to leverage its global purchasing volumes to reduce the cost of raw materials. In this way IQE's outsourced services, provide compelling benefits in terms of flexibility and predictability of cost, thereby significantly reducing operating risk.

IQE operates multiple manufacturing and R&D facilities facilities worldwide.

About BluGlass:

www.bluglass.com.au

BluGlass Limited is an Australian technology company formed to commercialise a breakthrough in the Semiconductor Industry.

BluGlass has invented a new process using Remote Plasma Chemical Vapour Deposition (RPCVD) to grow semiconductor materials such as gallium nitride (GaN) and indium gallium nitride (InGaN), crucial to the production of high efficiency devices such as next generation lighting technology Light Emitting Diodes (LEDs) with advanced performance and low cost potential. The RPCVD technology, because of its low temperature and highly flexible nature, offers many potential benefits over existing technologies including higher efficiency, lower cost, substrate flexibility including GaN on silicon and greater scalability.