UK's IQE forecasts 2025 earnings boost from defence, AI demand

Jan 12 (Reuters) - Britain's IQE IQE.L expects revenue and adjusted core profit for fiscal 2025 at the upper end of its forecasts, the semiconductor wafer maker said on Monday, with demand driven by the military and defence, AI, data centres, and handset sectors.

The company's epiwafers, which are used to make semiconductor chips, power radar, electronic warfare systems and secure satellite communications used by aerospace and defence suppliers.

Faster-than-expected funding releases for some of the U.S. military and defence programmes boosted its second half, IQE said. Continued growth in the artificial intelligence and data centre markets as well as increased sales of its wireless products tied to new handset introductions helped its Taiwan operations, it added.

The Apple supplier expects 2025 revenue of 97 million pounds ($130.39 million) and adjusted core profit of at least 2 million pounds.

The company, which has been undergoing a strategic review, added it was negotiating non-binding offers for the group as a whole as well as separate bids for certain assets.

($1 = 0.7439 pounds)