Semiconductor materials company IQE has revealed it is expecting its full year results to come in at the top end of its guidance, including a revenue of £97m.

The group was providing a trading update for the year to 31 December and reported that it had seen “strong trading momentum” in H2, due to faster than expected funding releases for some US military and defence programmes which were previously anticipated for 2026.

IQE, based in Cardiff, makes semiconductor wafers and materials for a variety of applications across the communications, automative and aerospace industries.

In its latest trading statement, the company said it had made “good progress” with customers and suppliers to improve its near-term liquidity and working capital, resulting in a cash position of £15.6m as of 31 December 2025.

IQE also said it had entered the opening quarter of 2026 with a “strong” order book, reflected by demand in the consumer mobile, data centre and AI-related photonics markets.

“I am pleased to report a positive second half of trading for IQE in 2025,” IQE CEO, Jutta Meier, commented. “Coupled with a strong Q1 order book and sustained demand across key end markets, the company is well-positioned to enter 2026.”

IQE also provided an update on a strategic review it is undertaking amid ongoing talks of a potential takeover of the group.

The company said its board is still negotiating non-binding offers for the group as a whole, in addition to separate bids for certain other group assets. IQE also said its board been had been “encouraged” by the level of interest received and the recognition of the company’s value.

Meier added: “We continue to advance our strategic review and I am encouraged by the progress we are making. I remain confident in the opportunity ahead for the company and look forward to updating the market in due course.”

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