IQE signs multi-year optical communications deal

25th Jun 2014 09:34

Semiconductor wafer products supplier IQE has entered into a multi-year manufacturing agreement that is expected to be worth more than £1m a year.Under the agreement, which was signed with an existing, unnamed customer, AIM-listed IQE will supply epitaxial wafers for use in optical communications applications.The deal, which also includes scope for adding new products that are currently undergoing qualification, increases the group's share of the customer's business to a minimum of 80%. IQE said its customers are increasingly looking to ensure security of supply by entering into long-term supply agreements. Chief Executive Officer Drew Nelson explained: "As the importance of photonic applications continues to grow, customers increasingly need to ensure security of supply to meet the needs of their technology roadmaps and are seeking to enter into volume manufacturing agreements."IQE is the global leader in wafer outsourcing and is seen by its customers as their key strategic partner to support this rapidly growing industry sector."WS