2013-03-14 08:06:51 -

Cardiff, UK, 14 March 2013: IQE plc (AIM: IQE, "IQE" or the "Group"), the
leading global supplier of advanced semiconductor wafer products and services to
the semiconductor industry, is pleased to announce that the company's epitaxial
growth services will be used by Canada based OneChip Photonics to produce InP
based Photonic Integrated Circuits (PICs) for the data centre interconnect (DCI)
and passive optical network (PON) markets.

OneChip announced in its press release yesterday that its unique design enables
the company  to decouple epitaxial growth and wafer processing, while
outsourcing both functions to independent, pure-play commercial foundries.
Under this fabless model, OneChip has been working with IQE for the production
of its OneChip-designed 4-inch indium phosphide (InP)-based epitaxial wafers,
leveraging the infrastructure and expertise IQE has gained over 25 years,
supporting the advanced   semiconductor industry with its pioneering outsourcing
model.

Valery Tolstikhin, Founder and CTO of OneChip Photonics, said:

"The iron-doped, semi-insulating 4-inch InP substrates, and the metal organic
chemical vapour deposition (MOCVD) growth technique, required for OneChip's epi-
wafers, are the same as those used by IQE for its high-volume epitaxy products,
so we have strong economies of scale in working together. IQE is recognized as a
leading independent, pure-play epi-wafer foundry, which not only provides world-
class services, but also perfectly fits into our fabless PIC manufacturing
model."

Drew Nelson, President & CEO of IQE, said:

"OneChip has developed some exciting new integrated photonics products for the
high-volume, but cost-sensitive, optical communications markets. We are
delighted to apply our unique high-volume manufacturing expertise in producing
InP-based epi-wafers for OneChip's innovative PIC technology. OneChip's use of
the fabless manufacturing approach further endorses IQE's outsourcing business
model in the field of photonic devices, and we look forward to helping OneChip
continue to scale its business as it extends its unique PIC technology to new
markets."




CONTACTS:


IQE plc (+44 29 2083 9400)
Press: Chris Meadows
Technical: Dr Wynne Jones



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Source: IQE plc via Thomson Reuters ONE
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