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IQE sees sales hit from U.S.-China trade war

IQE sees sales hit from U.S.-China trade war
By Reuters
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(Reuters) - Britain's IQE Plc <IQE.L> said on Tuesday its sales had been hit by the trade war between Beijing and Washington, while reporting a handful of new deals with Asian customers that would give it access to new supply chains and provide "significant" volumes.

IQE, which makes semiconductor wafers for chips used in Apple Inc <AAPL.O> products among others, had warned last month that 2019 revenue would miss forecasts, blaming a bigger-than-expected hit on the industry's supply chain from U.S. restrictions on China's Huawei.

The United States restricted Huawei from buying U.S. goods in May, saying the firm's equipment could be used by Beijing for spying. The move ratcheted up trade tensions between the world's two largest economies.

IQE said on Tuesday global supply chains were being redeveloped across the globe as a fall out of the long-running trade war.

"This has had an impact on sales volumes for IQE's products, as global customers adjust to these new supply chain situations and IQE becomes qualified in these new supply chains," the company said.

IQE, which has also been hit by a global slowdown in demand, said it had got orders from a major customer in Asia for new Asia-centric supply chains, for a type of transistor.

The company also won additional orders from a second Asian customer, specifically addressing increased demand from original equipment manufacturers, while its Singapore operation won a new Asian customer for transistors used in wireless devices and networks.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Shounak Dasgupta)

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