(Reuters) -British semiconductor company IQE expects its revenue for the fiscal year 2025 to align with market expectations, the company said on Tuesday, adding that it was focusing on the potential
IQE Considers Relocating Production to the US Amid Tariff Worries
By Yadarisa Shabong
(Reuters) - Apple supplier IQE is looking at moving some production to the United States and considering dual sourcing and sharing tariff costs with customers as it guards against potential U.S. duties on the chips sector, its new CEO told Reuters on Tuesday.
Trump last month said he was considering tariffs on semiconductor chips, starting at "25% or higher", but did not specify when these could come into effect.
Jutta Meier, who was confirmed as CEO on Tuesday, said in an interview with Reuters that IQE, which supplies the compound semiconductor wafer products used in the iPhone's facial recognition sensor, was constantly talking to customers to find ways to mitigate tariff pain.
"The other thing is we need to look at alternative sourcing activities, moving some of our production inside of the U.S. and ensuring that there's production there, but obviously that will take investment, that really takes time to do that," she added.
For instance, the company is looking at gallium supplies from outside of China as part of its dual sourcing strategy, Meier said.
DIVERSIFICATION STRATEGY
IQE earlier said it could sell its Taiwan business as part of a strategic review to cut debt and boost growth, having previously considered an IPO of the operation.
"(A) full sale...makes sense from a timing perspective and also from the valuation that we will get for the remaining company, and we can definitely use the proceeds much quicker for our growth and diversification strategy," said Meier.
IQE expects revenue to be within market expectations of between 115.1 million pounds ($151.9 million) and 123 million pounds in its current fiscal year to March 2026, according to a company-provided consensus.
It reported 118 million pounds in revenue for the year ended March 31, 2025.
($1 = 0.7578 pounds)
(Reporting by DhanushVignesh Babu and Yadarisa Shabong in Bengaluru; Editing by Sumana Nandy, Kirsten Donovan)
