Apple supplier IQE to launch strategic review as it warns of flat revenue this year

British semiconductor wafer maker IQE said on Monday it would start a strategic review of its assets and consider a full sale of its Taiwan operations, as it warned that group revenue would not grow this year due to a weaker-than-expected sector recovery.

The Apple supplier had announced in July plans to launch an initial public offering for its Taiwan business on the local stock exchange, while retaining control of the unit, but said on Monday that it was now looking at all options.

Shares of the company skidded 15% to 9.02 pence in early trading. They have dropped about 54% this year.

“We will continue to further optimise our operations, restructuring and right-sizing our business,” an IQE spokesperson said.

The company, which last month announced the immediate departure of CEO Americo Lemos, has been navigating a challenging financial environment with a sluggish recovery in the semiconductor industry and the growing significance of supply chain security over cost, amplified by rising U.S.-China tensions.

Its peers, including U.S.-based Apple supplier Skyworks Solutions and Chipmaker Qorvo, have all reported soft quarters and guidance over the quarter.

IQE had earlier expected both annual revenue and adjusted core profit to grow.

IQE, whose ‘epi-wafers’ are used in the Apple iPhone’s facial recognition sensors, said it expects 2024 revenue to be around 115 million pounds ($145.27 million), or flat year-on-year.

An LSEG poll of three analysts had forecast full-year revenue of 132.59 million pounds.

IQE said it expects full year adjusted core profit of at least 5 million pounds. Analysts, on average, had forecast core profit of about 12.5 million pounds, according to the LSEG poll.