IQE plc

Cardiff, UK

12 October 2021

Reach

IQE enters into strategic IT transformation agreement with Critical Manufacturing

IQE plc (AIM:  IQE, "IQE" or the "Group"), the leading supplier of compound semiconductor wafer products and advanced material solutions to the global semiconductor industry, is pleased to announce it has entered into a multi-year strategic IT transformation agreement with Critical Manufacturing to support the future growth of IQE.

IQE has engaged Critical Manufacturing to deliver a Manufacturing Execution System (MES) which will:

·    Enable IQE to continue providing world-leading wafer quality as the Group scales operations;

·   Increase agility and responsiveness to customers to ensure IQE continues to be the partner of choice in advanced semiconductor materials; and

·    Create consistency in global operations to maximise production flexibility and efficiency

The MES implementation is part of a broader systems and process transformation of the Group, in support of enabling IQE's growth. Legacy platforms will be replaced with automated systems to drive manufacturing efficiencies and standardisation at all global sites, enabling economies of scale and improving profitability. Critical Manufacturing will deliver the MES transformation from Q4 2021 to 2024.

Keith Anderson, Chief Operating Officer of IQE, commented:

"As part of the ongoing transformation of our IT systems and business processes, IQE has chosen Critical Manufacturing as the Group's long-term strategic partner. Together we will deliver a manufacturing platform which is robust, scalable and adaptable. This new system will provide the foundation to efficiently scale our manufacturing capabilities, provide state-of-the-art support to our operations teams and enable a world-class service for our customers.

Contacts:

IQE plc

+44 (0) 29 2083 9400

Phil Smith

Tim Pullen

Amy Barlow

Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822

Andy Rivett-Carnac: +44 (0) 7968 997 365

Chloe Francklin: +44 (0)78 3497 4624

ABOUT IQE

http://iqep.com

IQE is the leading global supplier of advanced compound semiconductor wafers and materials solutions that enable a diverse range of applications across:

·    handset devices

·    global telecoms infrastructure

·    connected devices

·    3D sensing

As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned in this market which has high barriers to entry. IQE supplies the whole market and is agnostic to the winners and losers at chip and OEM level. By leveraging the Group's intellectual property portfolio including know-how and patents, it produces epitaxy wafers of superior quality, yield and unit economics.

IQE is headquartered in Cardiff UK, with c. 670 employees across nine manufacturing locations in the UK, US, Taiwan and Singapore, and is listed on the AIM Stock Exchange in London.

ABOUT CRITICAL MANUFACTURING

https://www.criticalmanufacturing.com/

Critical Manufacturing, a subsidiary of ASM Pacific Technology, provides the most modern, flexible and configurable manufacturing execution system (MES) available. Critical Manufacturing MES helps manufacturers stay ahead of stringent product traceability and compliance requirements; reduce risk with inherent closed-loop quality; integrate seamlessly with enterprise systems and factory automation, and provide deep intelligence and visibility of global production operations.

As a result, Critical Manufacturing's customers are Industry 4.0 ready. They can compete effectively and profitably by easily adapting their operations to changes in demand, opportunity, or requirements, anywhere, at any time.