By Yadarisa Shabong
(Reuters) – Apple supplier IQE is looking at moving some production to the United States, expanding its supplier base, 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.
U.S. President Donald Trump said last month 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 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 risks.
“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 in an interview.
For instance, the Cardiff-based company is looking at gallium supplies from outside of China as part of its strategy to ensure it is not reliant on any single supplier, Meier said.
Trump has announced a swathe of tariffs on global trading partners as well as sectors such as autos, and steel and aluminium. Some broader tariffs have been delayed while countries try to negotiate a deal with the U.S. administration.
There is “currently no direct impact” from the implementation of U.S. tariffs, said IQE, which has manufacturing sites in the U.S., Britain and Taiwan.
DIVERSIFICATION STRATEGY
IQE has 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 2025 revenue to be within market expectations of between 115.1 million and 123 million pounds ($151.9 million-162.5 million), according to a company-provided consensus.
It reported 118 million pounds in revenue for 2024.
Shares in the company were up 4.6% in afternoon trading.
($1 = 0.7578 pounds)
(Reporting by DhanushVignesh Babu and Yadarisa Shabong in Bengaluru. Editing by Sumana Nandy, Kirsten Donovan and Mark Potter)
