- Compound semiconductor technology developer IQE has warned of weakening revenues as smartphones sales and ongoing fallout from US sanctions on Huawei drag on the wider microchips industry.

The Cardiff-based business says it now anticipates first half revenue in the range of £65m to £68m, versus £68m consensus estimate. But the impact is likely to extend through the rest of the year, dragging overall annual revenue below previous guidance.

IQE now believes full year revenue will land somewhere within the £140m to £160m range, down on the £175m that analysts had been expecting.

IQE points to an increasingly cautious marketplace and has very recently received a reduction in forecasts from a number of chip customers, both within its Wireless business and also in Photonics, which designs laser-based technology.

This is a larger impact than the previously guided risk related specifically to Huawei, due to the far-reaching impacts on other companies and supply chains that are now becoming evident.

'These are unprecedented times for the global semiconductor industry as geo-political conditions affect interconnected global supply chains', says IQE chief executive Drew Nelson.

'It is now clear that the impact of Huawei's addition to the US Bureau of Industry and Security's Entity List is having far-reaching and long-lasting impacts on global supply chains.'

'As global markets adjust and recover, we remain extremely well placed for significant future growth', says Nelson.

Story provided by