UK semiconductor wafer maker IQE, which makes compound semiconductor wafers, raised its 2026 revenue growth forecast to above 30% from 20% after stronger-than-expected first-half trading, supported by demand for products used in AI infrastructure and data centers.

IQE said first-half revenue should be at least 64 million pounds (US$86 million) and it expected 2026 core profit in the low teens of millions of pounds.

The company said demand accelerated for indium phosphide solutions, used in optical photonic components such as lasers and detectors.

IQE said its wafers support fibre links for AI infrastructure at 800G speeds and in hyperscale data centers.

The stronger outlook was also supported by demand from the aerospace and defense market, as well as for its 3D sensing and wireless products.

IQE added that first-half trading beat management expectations in all core businesses.

🔗 Source: Reuters