Business / Science& Tech

IQE: surviving at the heart of wireless technology

Quantum Optics and Electronics developed by IQE

Quantum Optics and Electronics developed by IQE

The supply company for IQE smartphone  has faced falling shares and competition with other companies.

IQE is one of the most popular suppliers of semiconductor wafer products for wireless and optoelectronic components. Data shows that the company in Cardiff nearly control 60% market share among all the manufactures. This is a huge dominate to the market.

The company as a supplier of many phone companies like Apple and Samsung, it produced a great amount of semiconductor products every year for the smart phone market.

Laxie Liao, a student of Cardiff Business School and an iPhone5 user said: “I just bought my iPhone5 for less than three months. It is quite convenient for us today that we can use the smart phone. To access the internet wirelessly, we won’t lose touch to our old friends any more. Although I don’t know too much about IQE, I really appreciate this technology could give us such a huge benefit.”

IQE has suffered its share fall recently, facing pressure under the global economic crisis situation. According to Peter Swan, an officer of the Office of Fair Trading, IQE is facing a merger with Kopin Wireless and it is still under investigation.

Elliott Ball, also of the Office of Fair Trading said: “As you can see on the website, IQE and Kopin wireless have a merge. Now we are doing a former first merger review. We still need to analyze the merger‘s risk and value. There are four aspects we need to make sure that the merger qualified the review.

“The merger should be more than 70 million pounds turn over and more than 25% market share. And we need to make sure after the merger, they are still competitive and the products could be cheaper. There has to be four stages of a merger, now we are in the second stage. ” he said.

It has also faced the challenge of its largest competitor, Qualcomm.

Qualcomm is American titan supplier of the similar products as IQE. It has introduced a new product with confidence to enter the IQE’s market. Experts predict that the first target of Qualcomm is the Chinese low end smartphone market.

Dayong Zhang, an employee of the Chinese Zhongxing (ZTE corporation) said: “I don’t think Qualcomm will cooperate with us because the Americans thought we could do harm to their country. But China has a huge market; they can’t afford to lose it.”

Both IQE and Qualcomm are facing the same problem of the global economic recession and IQE is one of the world’s leading companies just like the Qualcomm, which is unlikely to have a huge impact on IQE.

Nicholas Li

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