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IQE considers dual sourcing to mitigate tariff impact

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CEO Meier discusses potential US production move

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CEO says a full sale of Taiwan ops makes timing sense

(Recasts with CEO interview)

By Yadarisa Shabong

May 13 (Reuters) - Apple ( AAPL ) supplier IQE is looking

at moving some production to the United States and considering

dual sourcing and sharing tariff costs with customers as it

guards against potential U.S. duties on the chips sector, its

new CEO told Reuters on Tuesday.

Trump last month said he was considering tariffs on

semiconductor chips, starting at "25% or higher", but did not

specify when these could come into effect.

Jutta Meier, who was confirmed as CEO on Tuesday, said in an

interview with Reuters that IQE, which supplies the compound

semiconductor wafer products used in the iPhone's facial

recognition sensor, was constantly talking to customers to find

ways to mitigate tariff pain.

"The other thing is we need to look at alternative sourcing

activities, moving some of our production inside of the U.S. and

ensuring that there's production there, but obviously that will

take investment, that really takes time to do that," she added.

For instance, the company is looking at gallium supplies

from outside of China as part of its dual sourcing strategy,

Meier said.

DIVERSIFICATION STRATEGY

IQE earlier said it could sell its Taiwan business as part of a

strategic review to cut debt and boost growth, having previously

considered an IPO of the operation.

"(A) full sale...makes sense from a timing perspective and

also from the valuation that we will get for the remaining

company, and we can definitely use the proceeds much quicker for

our growth and diversification strategy," said Meier.

IQE expects revenue to be within market expectations of

between 115.1 million pounds ($151.9 million) and 123 million

pounds in its current fiscal year to March 2026, according to a

company-provided consensus.

It reported 118 million pounds in revenue for the year ended

March 31, 2025.

($1 = 0.7578 pounds)