(iTers News) - IQE plc announces the signing of an initial three-year supply contract with Philips Technologie GmbH (“Philips”) for epi-wafers used for the manufacturing of Vertical Cavity Surface Emitting Laser (VCSEL) devices.

VCSELs are semiconductor laser chips which can be produced in mass scale, in a similar process flow to LED chips, thus opening the way for a very cost effective, high performance laser devices, which can be used in a wide variety of applications, including optical data communication, industrial sensing, illumination, gesture recognition and heating applications.

Together with partners like IQE plc, Philips aims to scale up its activities in order to meet the increasing worldwide demand in solid state lasers.

IQE uses advanced crystal growth technology (epitaxy) to manufacture and supply bespoke epi-wafers to major laser manufacturing companies. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms.

The supply contract adds significantly to IQE’s photonics business, underlines the long term relationship between the two companies and reflects the strengthening market for photonic devices. The contract, which provides IQE with the majority supply of epi-wafers to Philips, is renewable after the initial three year term, and also includes a joint development agreement.

Dr Joseph Pankert, General Manager of Philips Photonics, said: “VCSELs are expected to show rapid growth in the coming years. This growth is driven by a variety of applications and Philips is committed to address the growing demand. Teaming up with IQE is an essential element of our growth strategy and enables us to meet the required volume and quality levels.”

Dr Drew Nelson, CEO of IQE plc, said: “IQE is delighted to have teamed up with Philips in the development of a range of world leading photonic products. Many of the applications that are enabled by IQE’s VCSEL wafers are at an inflection point where growth is expected to significantly ramp up over the coming months and years. IQE is able to offer many attractive USP’s, including a comprehensive product range, scale of operation, multiple manufacturing locations, and long experience in LD epi-wafer manufacturing”