News: Suppliers
29 April 2026
IQE raises £81m, including £45m from MACOM long-term supply agreements
Epiwafer and substrate maker IQE plc of Cardiff, Wales, UK has announced a strategic investment from customer MACOM Technology Solutions Inc of Lowell, MA, USA, and other existing shareholders, raising gross cash proceeds of about £81m.
The fundraising comprises the following:
- MACOM is investing £45m, including £30m in equity (a subscription of 151,515,151 new ordinary shares at the issue price of 19.8 pence each, giving MACOM about 11.5% of total shareholder voting rights) plus £15m in new secured zero-coupon convertible loan notes (which have a term of 60 months and are not interest bearing). MACOM will also receive warrants over 75,757,575 ordinary shares, which will become exercisable should the convertible loan notes be redeemed by IQE prior to the maturity date without MACOM electing for conversion.
On completion of its investment, MACOM will enter into long-term strategic supply agreements (LTSAs) with IQE, enabling scalable, high-volume manufacturing across key growth segments. MACOM will be entitled to appoint two non-executive directors to IQE’s board. - The redemption by IQE of the existing convertible loan notes issued on 13 March 2025 and reinvestment by the existing noteholders of most of the proceeds at the issue price by way of subscription for 115,011,962 ordinary shares, raising gross proceeds of £22.8m, subject to and conditional on MACOM’s investment.
- A placing of new ordinary shares at the issue price, raising gross proceeds of £11m (to be conducted via an accelerated bookbuild process, subject to and conditional on MACOM’s investment and the existing noteholder subscription), plus a retail offer of up to £2m of shares (via Retail Book Ltd, subject to and conditional on the placing), both open to existing shareholders only.
The share issue price represents discounts of 10.1% to the 12-month VWAP and 58.4% to the closing mid-market price of 47.6 pence per ordinary share on 24 April.
The fundraising is conditional on the passing of resolutions by IQE shareholders at a general meeting on 15 May. The holders of existing loan notes who hold ordinary shares (amounting to about 29.1% of all shares and votes in IQE) have undertaken to vote in favour of the fundraising resolutions.
IQE will use the proceeds of the fundraising to: (1) repay its $35m (£27m) revolving credit facility with lending bank HSBC; (2) redeem the existing loan notes; and (3) “provide the balance sheet strength to allow us to capitalize on the opportunities in front of us, while maintaining our unique global footprint,” says IQE’s CEO Jutta Meier. “We are now better positioned than ever to execute on our growth strategy, including in key technologies such as indium phosphide (InP) and gallium nitride (GaN).”
The new investment is “recognition of the intrinsic value of the company and its importance in key growth segments,” says IQE’s chair Mark Cubitt. “This fundraise removes debt pressures and leaves the Group with a capital structure to enable future growth,” he adds.
“As a longstanding customer, MACOM believes this transaction will allow IQE to realize its full potential in technology, operational execution and financial performance,” comments MACOM’s CEO Stephen Daly.
As a result of the investment, IQE is concluding its Strategic Review (announced in November 2024). This focused on Taiwan operations, covering all strategic options including an IPO or a full sale of IQE Taiwan. On 12 February 2025, IQW said it had secured convertible loan note financing from certain existing shareholders for an initial term of 12 months (extendable by a further 6 months) to provide additional short-term liquidity. On 8 September 2025, the Strategic Review was expanded to include all options including a full sale of IQE. All discussions with potential buyers have now been terminated.
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