IQE, the British manufacturer of compound wafers used to make semiconductors, has said it expects revenue to jump by 25 per cent year on year in the first half of 2024.

The Cardiff-headquartered company said it expects revenue to be at least £65m in the first six months of the year, which is in line with management expectations. This is a growth of around three per cent from the second half of 2023.

Shares rose over four per cent when the market opened on Tuesday morning.

It may come as reassurance to investors after IQE posted an annual operating loss of £25.8m in April and revenue sunk 30 per cent due to an “underutilisation of manufacturing capacity“.

IQE’s wafers are used in a range of technologies including smartphones, for 5G, smart connected devices, aerospace and security. 

Demand has stuttered in recent years, as inventories became overstocked during the pandemic and amid a cool global smartphone market.

However, as global demand for semiconductors picks back up, shares in the London-listed stock have risen over 33 per cent year to date.

Americo Lemos, chief executive officer of IQE, said in the trading update: “I am pleased with the performance we have delivered for H1, in an industry which will remain in recovery throughout 2024.

“As markets correct at varying paces, we remain confident in our diversification strategy which will enable us to take advantage of the growth opportunities ahead.”

IQE reports its full interim results on 10 September.