Key Face ID Component Maker Plans Taiwan IPO

The maker of a key component in Apple’s facial recognition technology is preparing an Initial Public Offering on the Taiwan Stock Exchange. And after announcing the plans, British chip parts maker IQE Plc’s shares jumped more than 8 percent.

The company, which specializes in ‘epi-wafers’ used in Apple’s iPhone facial recognition sensors, has been benefiting from strong demand driven by an AI boom and increased market share in China.

IQE plans to list IQE Taiwan on the TWSE, selling a minority shareholding while retaining control. CEO Americo Lemos stated that a successful IPO would “maximize the value of [their] asset.”

Founded in 1988, IQE has grown to become a leading supplier of advanced semiconductor materials. The company’s primary focus is on producing epitaxial wafers (epi-wafers) used in a variety of applications, including photonics, wireless communications, and power electronics. Over the years, IQE has expanded its global presence with operations in Europe, Asia, and the United States.

IQE’s involvement with Apple began when the tech giant adopted the company’s epi-wafers for use in facial recognition sensors in iPhones. These sensors are critical components of Apple’s Face ID technology, which was first introduced in the iPhone X in 2017. The partnership with Apple has significantly boosted IQE’s profile and demand for its products, as the widespread use of Face ID in Apple’s product lineup continues to drive growth for the company.

The company recently announced an expected revenue increase of at least 25 percent for the first half of the year.

Its IPO process will be in two stages, starting with an initial listing on the Emerging Market Board expected in the first half of 2025. Brokerage firm Peel Hunt believes that this minority sale will help fund IQE’s growth strategy while maintaining its global client base and footprint.

Peel Hunt also highlighted that the IPO would make IQE more agile in the face of potential geopolitical risks, providing both a risk hedge and a growth opportunity. IQE has engaged Taishin Securities as its financial advisor for the IPO.

Source: Reuters

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July 31, 2024 – by Cass Kennedy