IQE, a Cardiff-based compound semiconductor wafer supplier, reported a robust 2025 trading year, projecting full-year revenue of approximately £97 million, at the upper end of its guided range. This performance was driven by accelerated execution of military and defense programs, as well as rising demand for photonics in artificial intelligence and data center applications. IQE also reported an adjusted EBITDA outcome above prior expectations, supported by higher capacity utilization and operational leverage. The company's cash position stood at £15.6 million, reflecting progress with customers on short-term liquidity and working capital.

As IQE enters 2026, it benefits from a strong order book, particularly in consumer mobile, data center, and AI-related photonics markets. Demand trends observed in the fourth quarter of 2025 are expected to continue, bolstered by ongoing customer programs. The company's board is conducting a strategic review, negotiating non-binding offers for the group as a whole and for individual assets to maximize shareholder value.

Chief Executive Jutta Meier emphasized the positive second half of trading in 2025 and highlighted sustained demand across key end markets. The company's strategic review comes at a time when the semiconductor industry is experiencing increased demand for advanced materials and technologies, particularly those linked to AI and data centers. IQE's focus on these high-growth areas positions it well to capitalize on market trends, even as it navigates potential strategic changes.