IQE Plc CEO Jutta Meier warns that Chinese export controls on indium phosphide pose a critical supply risk for the semiconductor industry. China controls 70% of the material, which is vital for photonics chips used in AI data centres. Despite these geopolitical constraints, the Cardiff-based chipmaker reported a 40% revenue jump and plans to transition to the London Stock Exchange Main Market to attract institutional capital.
IQE revenue growth trajectory
- ▪Cardiff-based semiconductor firm IQE Plc reported a 40% jump in revenue and reaffirmed its full-year guidance of more than 30% growth for 2026
- ▪IQE Plc previously forecast 20% sales growth for 2026 in July, following a 2025 fiscal year where revenue fell 18% to £97.3 million
Indium phosphide supply constraints
- ▪China holds 70% of the global supply of indium phosphide, according to data from the US Geological Survey
- ▪IQE Plc Chief Executive Officer Jutta Meier warned that access to indium phosphide substrates is emerging as a key risk for the semiconductor industry
Chinese export control policies
- ▪IQE Plc Chief Executive Officer Jutta Meier stated that the company is managing geopolitical supply risks through broad engagement with different suppliers
- ▪Indium phosphide wafer prices rose by approximately 250% around June 2026 when Beijing began slow-walking export licences
Photonics chip demand drivers
- ▪Indium phosphide is a critical material used to manufacture photonics chips that generate and amplify light signals to move data within AI data centres
- ▪IQE Plc's photonics business overtook its wireless division as the company's largest business segment for the first time in 2025
European semiconductor material dependency
- ▪A Belgian researcher has been detained since May 2026 over allegations of passing gallium nitride secrets to China
- ▪Europe has very few compound semiconductor firms of scale, leaving the region vulnerable to upstream raw material dependencies where China holds the majority supply
IQE London Stock Exchange uplisting
- ▪IQE Plc is pursuing a London Stock Exchange Main Market listing to reach institutional capital and improve trading liquidity for its shares
- ▪IQE Plc intends to transition its listing from the Alternative Investment Market to the Main Market of the London Stock Exchange
Debatable claims
- ▪European governments should subsidize domestic semiconductor substrate production
- ▪Export controls on semiconductor technologies accelerate the creation of rival supply chains
Story comments
Loading comments…