Trading Update

• Performance in line with expectations as diversification strategy being implemented

IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of compound semiconductor wafer products and advanced material solutions, provides a pre-close Trading Update for the financial year ended 31 December 2023.

Revenue for the period is expected to be at least £115 million, reflecting a more than 20% increase from H1 to H2 2023, in line with previously issued guidance. The Group expects this to result in an adjusted EBITDA of at least £3 million and a net debt position of c.£3 million.

Americo Lemos, Chief Executive Officer of IQE, commented:

"I am pleased our business performance was aligned to guidance despite a challenging macro environment. We returned to growth from H1 to H2 2023 and expect this positive trajectory to continue in 2024. Additionally, we made significant progress implementing our diversification strategy, expanding our customer engagement pipeline and securing multiple design wins in GaN Power and MicroLED markets. Our strategic investment in GaN capacity in 2023 is anticipated to unlock further opportunities throughout 2024."

The Group will announce the date for reporting full year results in due course.

• Smart Connected Devices
• Communications Infrastructure
• Automotive and Industrial
• Aerospace and Security