UK compound semiconductor firm CEO Americo Lemos said that IQE is aiming to establish Taiwan as an important development base for compound semiconductors in Asia to overcome the changing geopolitical and supply chain restructuring challenges, and expects to increasingly use Taiwanese wafer foundries for gallium arsenide (GaAs) and gallium nitride (GaN).
Lemos embarked on a pivotal visit to Taiwan in October 2023, where he held discussions with Taiwan's Minister of Economic Affairs. Now, IQE is enjoying more than 50% of market shares in the global III-V semiconductor market.
During an exclusive interview with DIGITIMES Research, Lemos said IQE is aiming to establish Taiwan as an important development base for compound semiconductors in Asia to overcome the changing geopolitical and supply chain restructuring challenges and expects to increasingly use Taiwanese wafer foundries for gallium arsenide (GaAs) and gallium nitride (GaN).
Lemos boasts an impressive career history, having served in high-level executive positions at globally recognized technology giants such as GlobalFoundries, Qualcomm, and Intel. His extensive knowledge of the semiconductor supply chain and the Asian tech ecosystem positions him as a key figure to weigh in on the current geopolitical tensions, and the strategic importance of the semiconductor industry.
IQE, under Lemos' leadership, has established itself as a global leader in the development and manufacturing of compound semiconductor epiwafers. With over 30 years of industry experience and a worldwide manufacturing footprint, IQE provides a secure and robust supply chain for the global compound semiconductor market.
GaN power semiconductor and micro LED
Lemos highlighted IQE's focus on the development of GaN power semiconductors and the Micro LED industry. The company is optimistic about the application of GaN power semiconductors in electric vehicles, industrial settings, and data centers due to their low power consumption characteristics. "IQE is gearing up to expand its production to 12-inch GaN epi wafers to meet the growing demand in these markets," said Lemos.
Regarding Micro LED technology, Lemos sees wearables as the driving force behind its development. He anticipates the gradual integration of Micro LED technology into consumer electronics, TVs, displays, and other terminal applications. IQE's roadmap, based on 8-inch GaN epi wafers, may transition to 12-inch as market conditions permit and customer demand materializes. This diversification strategy positions IQE to leverage high-growth markets such as GaN Power electronics and Micro LED, solidifying its position as a leader in compound semiconductor epitaxy.
While headquartered in the UK, IQE operates in the US and Taiwan, where it has been serving customers for more than two decades.
In recent years, IQE has strategically consolidated its production sites, including the closure of its Singapore plant in 2021. The company is committed to maintaining strategic production bases in the United Kingdom, the United States, and Taiwan to cater to its global clientele. With over 30 years of experience and expertise in essential deposition technologies like molecular beam epitaxy (MBE) and Metal-Organic Chemical Vapor Deposition (MOCVD), as well as an extensive portfolio of epitaxy materials, IQE is a leading player in compound semiconductor epitaxy development and large-scale manufacturing.
Despite the gradual recovery of market conditions to pre-pandemic levels, the semiconductor industry still grapples with economic challenges such as inflation and sluggish demand in the consumer electronics and infrastructure sectors. As a result, sales of most end products remain below standard levels.
Optimistic over the long term
During the interview, Lemos acknowledged that IQE's performance in the first half of 2023 was adversely impacted by slow mobile phone sales and high inventory levels among IDM and foundry customers. Additionally, the construction of 5G base stations in various countries has experienced delays. These factors resulted in a revenue decline in the wireless communication segment compared to the same period from the previous year.
Despite these challenges, IQE remains optimistic about the wireless communication sector's future performance. Emerging markets such as India and African countries are actively adopting 5G technology and the demand for Internet of Things (IoT) modules, smart home security cameras, Wi-Fi routers, and other products is expected to contribute towards revenue growth. Lemos anticipates a gradual return of revenue in the wireless communication field.
Lemos also expressed optimism about the photonics sector's future development. Although IQE's photonics revenue declined slightly in the first half of 2023 compared to the previous year, the demand for sensors for space and security monitoring is on the rise, offsetting some of the revenue losses. IQE is actively pursuing opportunities in the VCSEL application business for automotive LiDAR systems and is building a 6-inch indium phosphide (InP) development platform to supply components required by electric vehicles, AI, cloud data centers, and more. Lemos believes this strategy will boost IQE's revenue performance in the photonics field.
