LONDON, June 17, 2026, 13:04 BST
- IQE shares gained around 1.4% to 55.79p in London. The stock hit 59.4p at one point earlier in the session.
- This step comes after Tower Semiconductor signed a multi-year deal to buy InP epiwafers for use in AI data-centre optical links.
- IQE’s voting share count reached around 1.32 billion after a warrant exercise added 5.9 million shares.
IQE shares traded higher in London on Wednesday after the Welsh semiconductor group announced a supply deal with Tower Semiconductor, citing demand from AI data centers. The stock held gains through the session.
The AIM-listed stock gained 1.43% to 55.79 pence by 13:03 BST, after starting at 55.90p and hitting a session high of 59.40p, according to Google Finance. AJ Bell data at 12:48 BST showed a bid-offer range of 55.50p-55.80p, with more than 22.8 million shares traded. Google
IQE is looking to reverse a steep profit drop expected in 2025 with a push for a 2026 comeback focused on photonics used in artificial-intelligence infrastructure. The stock is still volatile. But a Tower deal goes beyond IQE’s own forecasts and gives investors a clearer signal of demand.
IQE and Tower said Monday they reached a multi-year deal covering indium phosphide epiwafers, which are used for optical connections in AI data centres. Epiwafers are thin semiconductor films grown on wafers and then turned into chips. The arrangement sets a minimum purchase from Tower for the first year, with IQE agreeing to supply and both sides locked into minimum volumes beyond that.
IQE said it will supply wafers for Tower’s silicon photonics, including tech for 200 Gbps-per-lane pluggable transceivers and early 400G-per-lane modulators. The companies have also resolved past IP litigation. Tower will give IQE a broad, global, royalty-free license to its porous silicon patents.
IQE CEO Jutta Meier said the agreement “reinforces IQE’s position” in cloud and AI infrastructure. Tower President Marco Racanelli said the tie-up aims to help with products that need “performance and high volumes” as AI infrastructure grows. Iqep
IQE said Tuesday that warrant holders exercised rights for 5,864,624 ordinary shares at 13.5p each. The new shares should start trading on AIM around Wednesday. Total issued voting share capital will rise to 1,320,656,252 shares.
IQE repeated its May guidance, calling for over 20% revenue growth in 2026 and adjusted EBITDA in the high-single to low-double digits. For 2025, revenue slid to £97.3 million from £118.0 million last year, with adjusted EBITDA down 60% to £3.2 million. The adjusted EBITDA figure cuts out interest, tax, depreciation and amortisation.
IQE finished an £81 million fundraising following a strategic review, which included a £45 million investment from MACOM Technology Solutions. The company said it will use the money to pay down debt, help with working capital, and back further investment. Last month, Reuters said Peel Hunt analyst Damindu Jayaweera expects the shares to pause after a strong rally linked to the MACOM share sale. Investegate
Margins are still tight in the recovery. Meier told Reuters that shortages and Chinese export curbs pushed up prices for raw materials such as indium phosphide and gallium. He said IQE is talking with customers about “sharing the pain” on pricing. Delays to Tower volumes, AI infrastructure spending, or handset and defence demand would leave IQE vulnerable. Wireless revenue dropped 40% last year. Reuters Investegate
