IQE enters joint development agreement with X-FAB

(Sharecast News) - IQE announced on Thursday that it has entered into a joint development agreement with X-FAB to create a European-based gallium nitride (GaN) power device platform, targeting the growing demand for high-voltage applications across automotive, data centre and consumer sectors.

The AIM-traded firm said that under the two-year agreement, the companies would jointly develop a 650V GaN device, combining IQE's expertise in GaN epitaxy design and process technology with X-FAB's capabilities in technology development and semiconductor device fabrication.

It said the collaboration aimed to deliver a market-ready, scalable GaN power platform suitable for outsourced manufacturing.

The new platform was intended to support fabless semiconductor companies by offering an advanced off-the-shelf GaN solution that could accelerate product development and time-to-market.

IQE said the partnership would also lay the groundwork for future product expansion beyond 650V, positioning the companies to capture a larger share of the growing power electronics market.

"We are excited to join forces with X-FAB to develop a world-class GaN Power foundry solution in Europe, providing outsourced optionality for our fabless customers," said Jutta Meier, IQE's interim chief executive and chief financial officer.

"Building on our GaN epitaxy expertise and recent investment in additional GaN reactor capacity, this agreement aligns with our GaN diversification strategy, expands our customer reach and accelerates time-to-market for GaN Power applications."

At 1228 BST, shares in IQE were up 4.13% at 9.99p.

Reporting by Josh White for Sharecast.com.