Wales-based compound semiconductor wafer and advanced materials supplier IQE reported unaudited results for the first half of 2026 on 7 September. Revenue for the six months ended 30 June increased 43% from £45.3 million in the prior-year period to £64.6 million. The company moved adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to a £6.0 million profit from a £0.4 million loss. This is a company-reported management measure, not net profit after tax. Adjusted loss before tax was £8.2 million and the reported loss before tax was £12.6 million.

Photonics revenue was £38.5 million, up 45% year on year. IQE attributed this to the release of funding for certain US defence programmes and continued growth in AI and data-centre markets. Wireless revenue rose 40% to £26.0 million. IQE said higher utilisation of manufacturing assets and a larger photonics sales mix supported gross margins. These segment increases are the company’s reported revenue; they are not end sales by chipmakers or growth rates for the semiconductor market as a whole. IQE supplies wafer epitaxy and materials solutions used in different devices and systems, so the figures should not be assigned to a single end market.

IQE said demand for indium phosphide (InP) from data-centre and AI infrastructure was driving volume growth, and it planned to convert existing tools in the second half to increase InP capacity. The company also reported customer qualifications for gallium-arsenide optical-interconnect technologies, development and sampling of GaN-on-silicon epitaxy for microLED applications, and qualification work on GaN-on-silicon power epitaxy for AI data-centre power supplies. These describe investment, development or customer qualification stages; the release does not give a new fully operational capacity figure or contract value. Materials layers and customer approvals are inputs to chip supply chains, but they do not by themselves measure broader data-centre investment.

At 30 June, cash and cash equivalents were £41.6 million and adjusted net cash, excluding lease liabilities, was £30.2 million. IQE had reported adjusted net debt of £23.5 million a year earlier; it said completion of a strategic review and proceeds from fundraising contributed to the change. Management maintained its financial-year 2026 expectation of revenue growth above 30% year on year and adjusted EBITDA in the low tens of millions of pounds. This is company guidance, not a realised result. IQE also announced its intention to apply to move its shares to the London Stock Exchange Main Market, targeting the first half of 2027. The results point to stronger demand in some materials markets, but losses, cash flows, customer qualification and forward guidance need to be assessed separately.