IQE reiterates guidance despite Huawei blacklisting

British semiconductor company IQE said on Friday that its strategy of supplying multiple major manufacturers protected it from the recent blacklisting of Chinese telecom group Huawei to "a very significant degree".

In the short-term, IQE said it may experience "some delay" to orders and the potential for adjustment of supplier managed inventory levels, predominantly in its wireless business unit, while its photonics and infrared wings were "essentially unaffected".

While the AIM-listed outfit said the situation involving the ban was "dynamic", acknowledging that it was not clear how long the ban will remain in force or what the full implications will be, it said it was in "a strong position to adjust to the possible consequences and scenarios resulting from this in a positive manner."

IQE highlighted its supply relationships with multiple non-US customers, across all product lines, as having left it "well placed" to adapt to mid to long-term share shifts at both the component and original equipment manufacturer level.

"Although there remains uncertainty and unpredictability related to this specific matter, given the market opportunity IQE faces in H2, the company leaves full-year guidance unchanged," said IQE.

At 0850 BST, IQE shares were up 0.84% at 74.17p.