BITE OF THE APPLE FOR WELSH FIRM

The new iPhone from Apple has provided a major boost for one of Wales’ leading technology firms, IQE.

IQE’s wafer technology is understood to be powering the new 3D sensors in the latest version of the iPhone for features such as face recognition for unlocking handsets and facial expressions in emojis.

The sensors require so-called vertical cavity surface-emitting laser ( VSCEL) wafers, in which IQE has an 80% market share.

IQ is at the heart of ambitious plans to create the world’s first cluster for compound semiconductors in south east Wales, which over time is hoping to create 2,000 new hi-tech jobs. The firm is a leading global supplier for advanced wafer products and wafer services to the semiconductor industry.

Production of the new wave of VSCEL wafers will centre on the former LG Semicon foundry plant in Newport.

The first machines (five in total) for their production are already under order for the plant.

The facility has the capacity for 100 machines. This would double IQE’s current global number of machines. Each machine costs several million dollars.

While IQE, which has its global headquarters in Cardiff, never comments on the identity of its customers, such a lucrative contract win with Apple – which will run into millions of pounds – is expected to lead to its technology being used in a range of devices and sectors, including medical and driverless cars.

For example Apple was the first company to put cameras in their phones, and now they are standard in all mobile devices. The same could be true of 3D sensors.

IQE, which is listed on the London Stock Exchange, has seen its share price rocket over the last year by more than fourfold. This time last year it’s share price was 26p. It closed yesterday at 147p, giving it a market capitalisation of £1bn.