Cardiff-based semiconductor firm IQE has secured £81 million in funding, concluding an 18-month strategic review process. The fundraising round saw new shares issued at 19.75 pence each, representing a 58 percent discount to the company’s closing share price the previous Friday and a 10 percent discount to the 12-month average, resulting in notable dilution for current shareholders.

The capital raise includes a £45 million investment from US semiconductor company Macom, which is also a customer of IQE. Following this transaction, Macom holds 11.5 percent of IQE’s voting rights. An additional £23 million was raised through the reinvestment and partial conversion of existing loan notes, while £13 million came from a share placement targeting both institutional and retail investors, facilitated by Peel Hunt.

IQE stated that the funds will be used primarily to repay a $35 million loan from HSBC and to redeem existing loan notes. This financial restructuring is intended to strengthen the company’s balance sheet and support investment in its core semiconductor technologies.

The announcement concludes IQE’s extended strategic review, which began with explorations around its Taiwan operations and later, in September, expanded to consider a possible full sale of the company. While IQE engaged with multiple potential buyers during the review, it has since terminated those discussions, opting instead to focus on internal development supported by the fresh capital injection.