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A New Silicon Valley Is Planned, Boy-o. And IQE Is Part of It, Look You

By Malcolm Stacey | Tuesday 9 May 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello Share Moochers. After I commended IQE (IQE) the shares have gradually improved, now by some 200%. I very much considered taking profits. Only one thing stopped me last week: the thought that surely some predator had the Cardiff company in its sights. I’m now glad I didn’t sell for a different, more tangible, reason. The case to buy more shares gets better.

Ten local councils in the Cardiff region want to turn the area into a new Silicon Valley, like the one in California. This is no pie-in-the-sky idea. These local authorities have ponied up £38 million towards the project. The Welsh Assembly has already put down another £12 million.

The idea is to make compound semi-conductors. If, like me, you don’t know what these are, suffice to say they are used in robotics, the quickly-growing area to definitely be in. Semi conductors are also a big part of G5 phones and driverless cars. And they are vital to efficient solar power. The facility to make these thrilling gismos will be housed in a foundry in Newport, South Wales, making another 2,000 jobs.

Which brings me to IQE, which has become involved. It’s a specialist in compound semi-conductors. And demand for them is so strong that the share price has been slowly moving up from less than 20p to 64p as I write. In my view that share price has only just started to move.

But I should add that there are other companies in South Wales which make semi-conductors and they will also get part of the action. Even so, you can see the potential here. Welsh politicians see a new Silicon Valley as totally revitalising the Welsh economy.

Now as far as I know, IQE has not trumpeted this development very much. Which is refreshingly different to so many companies which come out with the least little thing in the hopes of hiking the share price. IQE is probably concentrating instead on turning itself into an extremely profitable company at the very forefront of some of the most exciting technologies currently available.

And now the Punter’s Return is open again.

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