Tech firm tipped to be at heart of the next iPhone

THE Cardiff-based technology firm IQE has been tipped to have an integral role in the next iPhone’s 3D-tracking technology.

IQE makes the special materials that are found in laser diodes, which are expected to feature in the next Apple iPhone.

The technology, The Telegraph reports, wil enable the iPhone 8 to have facial recognition software to unlcok the phone.

IQE has reportedly an 80% share in compound semiconductor wafers.

Compound semiconductors work exactly like silicon chips, but with much higher performance – up to 100 times faster – which is why they are important in high speed communications devices such as smartphones, and the performance requirements will increase further when we move from 3G/4G to 5G.

It was reported last month that a special purpose vehicle company is being set up to support the creation of the world’s first compound semiconductor cluster, which is aiming to create 2,000 hi-tech jobs in South Wales. In addition, early stage research from Cardiff University indicates that up to 5,000 new indirect jobs could be created by 2025 among existing and new companies locating in and around the cluster hub.

CSC Foundry Ltd is being established after being approved by the regional cabinet of the Cardiff Capital Region – which is made up of the 10 local authorities that make up the city region with a combined population of 1.4 million. It will support the development of the cluster, based around the former LG Semicon plant in Newport.

The cluster is now going under the brand name of CS Connected.

Confirmation of the special purpose vehicle follows agreement by the regional cabinet to contribute £37.9m from the region’s £1.2bn City Deal. The cluster has the potential to: Lever a further £375m of private sector investment; Create up to 2,000 high-skilled jobs; The potential for hundreds more in the wider supply chain cluster development; and

Return the investment for use on other regional schemes.

It was the first such investment since the £1.2bn City Deal programme was formally signed by the leaders of the 10 local authorities in the region on March 1.

The facility at Newport will be owned by the 10 councils through CSC Foundry. The company will then lease space to companies in the sector, including IQE.

The total global semiconductor market (compound semiconductors and silicon) is worth around $350bn a year and growing at 10-15% per annum.

The compound semiconductor market itself is worth around $30bn, but there is huge growth potential in new and emerging technologies such as driverless and autonomous vehicles and in healthcare technologies.

IQE, which is one of 16 Welsh companies listed on the London Stock Exchange, has seen a rapid increase in its share price. In a trading update before Christmas, the Cardiff-based company said it was on track to deliver both revenue and adjusted operated profit ahead of expectations for the year to the end of December.

The market value of the company is £263.9m.

The leading tech company is backing the 2017 Fast Growth 50 award for the fastest growing firm in Cardiff.