IQE’s trading update reported stable revenues with 2% growth y-o-y and strength in Photonics due to numerous end-market drivers. Total revenue growth was slightly held back by temporary production disruption at one of its customers, but this has now been solved and Q3 has had a good start. The stable performance should alleviate fears of a revenue collapse caused by silicon PAs displacing compound semis in the important mobile phone market, which increasingly appear to be unfounded.