The IQE plc (LON: IQE) share price fell 1.91% after announcing that it had entered into a strategic collaboration agreement with VisIC Technologies, a global leader in manufacturing GaN (Gallium Nitride) power solutions for the automotive sector.
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The two companies want to develop the highest reliability gallium nitride D-Mode (D-Mode GaN) power products for use in electric vehicle (EV) inverters. Investors muted reaction to the announcement indicates that they do not think it will significantly impact the company’s revenues over the long term.
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IQE is a leading supplier of semiconductor wafer products and advanced material solutions to the global semiconductor industry. The company characterised the latest partnership with VisIC Technologies as a crucial step towards cementing its global electric vehicle industry supplier position.
The two companies will collaborate to develop 200mm (8 inches) D-Mode GaN power epiwafers at IQE’s UK facilities, leveraging IQE’s well-established expertise in GaN technology. VisIC Technologies will use its ground-breaking D3GaN technology (Direct Drive D-Mode GaN) to bring the future of EV inverters into focus.
VisIC’s technology promises to increase reliability, reduce power consumption and enhance performance in electric vehicles. The partnership intends to combine IQE's epitaxy excellence and VisIC Technologies' innovative Power Electronics solutions to accelerate the adoption of GaN-on-Silicon technology in EVs.
The collaboration marks another crucial milestone in IQE's diversification strategy into the high-growth Power market, first detailed at its 2022 Capital Markets Day.
The IQE CEO, Americo Lemos, commented: “We are pleased to announce this collaboration with VisIC Technologies to develop GaN power technologies for use in electric vehicles. Our combined expertise in the field makes this an ideal partnership. This is another sign of the progress we are making in our diversification strategy as we look to capture the significant growth opportunities in the GaN automotive power market, which is vital in supporting the transition to electric vehicles.”
Dr Tamara Baksht, CEO and Co-Founder of VisIC Technologies, added: “We believe that teaming up with IQE is a pivotal step towards reshaping the EV industry. Their track record of delivery in the sector and technological leadership means they are ideally placed for us to collaborate with to develop next-generation technology to power the electric vehicle revolution.”
IQE share price.
The IQE share price fell 1.91% to trade at 18.50p, from Monday’s closing price of 18.86p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.