IQE wins three-year Philips laser deal

24th Oct 2013 14:26

AIM-listed semiconductor maker IQE has been contracted by Dutch electronics giant Philips in a three-year deal to supply epitaxial wafers that will be used to make solid state lasers. IQE, which has begun to diversify from its strength in wireless technology, said the contract adds significantly to its photonics business and reflected a strengthening market for photonic devices. The renewable contract, which also includes a joint development agreement, confirmed IQE as the majority supplier of epi-wafers to Philips.The wafers will be used by Philips in the manufacture of vertical cavity surface emitting laser (VCSEL) devices. VCSELs are semiconductor laser chips which can be produced on a mass scale and enable very low-cost, high-performance lasers for use in a wide variety applications, which, said IQE, were at "an inflection point where growth is expected to significantly ramp up over the coming months and years".Shares in IQE were up 1% to 27p at 14:35 on Thursday.OH