IQE plc

Cardiff, UK

10 October 2022

IQE announces strategic collaboration agreement with SK siltron

-     Builds upon IQE's strong history of GaN innovation

-     Partnership between industry leaders, with focus on growth in Asian markets

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 strategic collaboration agreement with SK siltron for the development and commercialisation of compound semiconductor products.

SK siltron pioneers next-generation semiconductor device innovation based on world-class technology. This agreement formalises a strategic agreement to develop business in the Asia market, leveraging SK siltron's significant substrate expertise with IQE's market-leading epitaxy capabilities.

IQE and SK siltron will focus on developing and delivering innovative epiwafers based upon Gallium Nitride (GaN) on Silicon Carbide (SiC) for radio frequency applications in the wireless communications market and GaN on Silicon (Si) for power electronics applications across a range of markets. Combined, these markets represent a multi-billion dollar opportunity for GaN devices and are forecast for strong growth in consumer, telecom and automotive applications.

Americo Lemos, Chief Executive Officer of IQE, commented:

"There are tremendous synergies between IQE's GaN pedigree and SK siltron's substrate offerings, and we will leverage these to bring innovative solutions to market. Expansion in Asia is a key focus for IQE and we are excited to be partnering with a globally-recognised leader in advanced materials."

Yongho Jang, Chief Executive Officer of SK siltron, commented:

"We are delighted that two world leaders in advanced materials are joining forces to jointly develop products for exciting growth markets related to GaN materials. I am looking forward to building considerable success with IQE and developing the relationship to cover a broad range of semiconductor materials."

Contacts:

IQE plc

+44 (0) 29 2083 9400

Americo Lemos

Tim Pullen

Amy Barlow

Peel Hunt LLP (Nomad and Joint Broker)

+44 (0) 20 7418 8900

Paul Gillam

James Smith

Numis (Joint Broker)

+44 (0) 20 7260 1000

Simon Willis

Hugo Rubinstein

Iqra Amin

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

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

Antonia Pollock: +44 (0) 7789 954 356

Marta Parry-Jones: +44 (0) 7884742400

ABOUT GaN

GaN is a wide bandgap semiconductor material that is growing in importance because of its ability to offer significantly improved performance across a wide range of applications while reducing energy consumption, compared to conventional silicon technologies. Applications for GaN include high performance 5G networks, including Massive MiMo base stations and power devices in automotive, consumer and industrial markets.

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. 685 employees across eight manufacturing locations in the UK, US and Taiwan, and is listed on the AIM Stock Exchange in London.

ABOUT SK siltron

http://www.sksiltron.com

SK siltron is an SK Group affiliate company based in Gumi, South Korea, that develops and manufactures high-quality wafers for the semiconductor industry. Established in 1983, SK siltron has grown to become a global leader providing wafers to some of the world's top technology companies for semiconductor applications, including NAND and DRAM memory chips, logic drivers, sensors and processors. SK siltron is Korea's only manufacturer of silicon wafers and is one of the top-five global wafer manufacturers.