IQE Regulatory News (IQE)

18 Dec 2007 15:52

IQE PLC18 December 2007 18 December 2007 IQE plc IQE signs substrate supply contract with AXT for 2008 Cardiff, UK - IQE plc (AIM: IQE, 'The Group') the leading supplier of advancedwafer products and services to the global semiconductor industry, has todayannounced the signing of a substrate supply agreement with AXT, Inc. (NasdaqGM:AXTI), a leading manufacturer of compound semiconductor substrates. Theagreement is valued at approximately $15.1 million, with an option to purchasean additional $3.5 million of substrates. All substrates ordered under thiscontract are to be shipped by the end of 2008. The substrates ordered by IQEare all 4-inch and 6-inch semi-insulating GaAs, principally for use in globalwireless applications. Drew Nelson, Chief Executive of IQE, commented: "As one of IQE's key suppliers, AXT is well positioned to be able to accommodateour increasing demand, particularly in larger diameter gallium arsenidesubstrates for the rapidly growing wireless applications industry. Itsexpansive manufacturing capacity, unique raw material capability and broadproduct portfolio make it an excellent choice as one of our key partners tosupport our strong growth plans for 2008." Contacts: IQE plc : www.iqep.com Drew Nelson +44 (0) 29 2083 9400Phil RasmussenChris Meadows College Hill:Adrian Duffield / Ben Way +44 (0) 20 7457 2020 Noble and Company :John Llewellyn-Lloyd/ Sam Reynolds + 44 (0) 20 7763 2200 About IQE plc IQE is the leading global supplier of advanced semiconductor wafers withproducts that cover a diverse range of applications, supported by an innovativeoutsourced foundry services portfolio that allows the Group to provide a 'onestop shop' for the wafer needs of the world's leading semiconductormanufacturers. IQE uses advanced crystal growth technology (epitaxy) to manufacture and supplybespoke semiconductor wafers ('epi-wafers') to the major chip manufacturingcompanies, who then use these wafers to make the chips which form the keycomponents of virtually all high technology systems. IQE is unique in being ableto supply wafers using all of the leading crystal growth technology platforms. IQE's products are found in many leading-edge consumer, communication, computingand industrial applications, including a complete range of wafer products forthe wireless industry, such as mobile handsets and wireless infrastructure,Wi-Fi, WiMAX, base stations, GPS, and satellite communications; opticalcommunications, optical storage (CD, DVD), laser optical mouse, laser printers &photocopiers, thermal imagers, leading-edge medical products, barcode, highefficiency LEDs and a variety of advanced silicon based systems. The manufacturers of these chips are increasingly seeking to outsource waferproduction to specialist foundries such as IQE in order to reduce overall wafercosts and accelerate time to market. IQE also provides bespoke R&D services to deliver customized materials forspecific applications and offers specialist technical staff to manufacture tospecification either at its own facilities or on the customer's own sites. TheGroup is also able to leverage its global purchasing volumes to reduce the costof raw materials. In this way IQE's outsourced services, provide compellingbenefits in terms of flexibility and predictability of cost, therebysignificantly reducing operating risk. IQE operates six manufacturing facilities located in Cardiff (two) and MiltonKeynes in the UK; in Bethlehem, Pennsylvania and Somerset, New Jersey in theUSA; and Singapore. The Group also has 11 sales offices located in majoreconomic centers worldwide. About AXT, Inc. AXT designs, develops, manufactures and distributes high-performance compoundand single element semiconductor substrates comprising gallium arsenide (GaAs),indium phosphide (InP) and germanium (Ge) through its manufacturing facilitiesin Beijing, China. In addition, AXT maintains its sales, administration andcustomer service functions at its headquarters in Fremont, California. Thecompany's substrate products are used primarily in lighting displayapplications, wireless communications, and fiber optic communications. Itsvertical gradient freeze (VGF) technique for manufacturing semiconductorsubstrates provides significant benefits over other methods and enabled AXT tobecome a leading manufacturer of such substrates, particularly inoptoelectronics applications. AXT has manufacturing facilities in China andinvests in five joint ventures producing raw materials. For more information,see AXT's website at http://www.axt.com. ### This information is provided by RNS The company news service from the London Stock Exchange