By Proactive
Publication Date: 2026-04-29 14:58:00
After IQE PLC (AIM:IQE) strengthened its balance sheet and improved its growth outlook after securing fresh investment from major long-term customer MACOM, Panmure Liberum said it was upgrading its forecasts but downgrading its rating after a strong rise in the shares in recent weeks.
The Cardiff-based compound semiconductor group revealed on Monday night that it has agreed an £81 million fundraise, made up of a strategic investment from MACOM alongside a placing, retail offer and convertible loan note.
Panmure Liberum analyst Harvey Robinson said the MACOM investment is “very encouraging” and the balance sheet is now “secured”, with the company able to retain its Taiwanese operations that had been put on the block last year in order to raise funds.
He predicted the company would move into a net cash position of around £29 million following debt repayment.
The deal also includes long-term supply agreements with MACOM, positioning IQE to scale production across key technologies such as indium phosphide (InP) and gallium nitride (GaN), Robinson said, which are increasingly used in AI data centres.
Sector momentum has been strong, with demand for photonics components rising after major investments by Nvidia signalled that photonics, especially InP technology, is a critical bottleneck in AI systems.
