September 9, 2025 /SemiMedia/ — Compound semiconductor wafer maker IQE said it is considering a potential sale of the company as part of an expanded strategic review, after warning of weaker annual earnings due to slowing smartphone demand. Its shares fell about 12% in early trading.

IQE, a supplier of wafers used in Apple’s iPhone facial recognition sensors, has faced pressure from high tariffs and a global smartphone market slowdown. To offset these challenges, the company has been cutting debt, shifting part of its production to the United States, and pursuing the sale of its Taiwan operations, with talks underway with prospective buyers.

Industry data from IDC showed global smartphone shipments grew only 1% in the second quarter of 2024, underscoring the sluggish demand that has weighed on IQE’s wireless business. The company expects the weakness to persist through 2025.

IQE confirmed that an unnamed party has approached it regarding a possible transaction but gave no further details.

Financially, the company now forecasts annual revenue of £90 million to £100 million, below its previous outlook of £115.1 million to £123 million. Core profit is projected between a £5 million loss and a £2 million gain, compared with an earlier forecast of £7.4 million to £10 million. In 2023, IQE reported core profit of £8.1 million on revenue of £118 million.