IQE chipper on Motorola promise

SHARES in Welsh chipmaker IQE shot up 28p to 196p after a deal with US giant Motorola which could take a 3.5% share at 155p, worth £14m. IQE is raising £20m in a separate share offer.

The funds will develop a technology discovered by Motorola and IQE which combines sophisticated silicon chips with cheap ones. It could slash the cost of video pictures on mobile phones, DVD players and the internet. IQE made £328,000 profits in nine months.