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The eagerly anticipated new iPhone from Apple will be launched later today and is expected to provide a major boost for one of Wales' leading technology firms, IQE.

Apple's 10th anniversary iPhone launch will provide the biggest ever single upgrade to the handset.

And in particular IQE's wafer technology is expected to power the new 3D sensors in the latest version for features such as face recognition for unlocking handsets and facial expressions in emojis.

The sensors require so called vertical cavity surface-emitting laser (VSCEL) wafers, in which IQE has an 80% market share.

IQE, which is at the heart of ambitious plans to create the world's first cluster for compound semiconductors in south east Wales, which overtime is hoping to create 2,000 new hi-tech jobs, is a leading global supplier for advanced wafer products and wafer services to the semiconductor industry.

Production of the new wave of VSCEL wafers will centre on the former LG Semicon foundry plant in Newport.

The first machines (five in total) for their production, or what are called in the industry as tools, are already under order for the plant which will be at the heart of the compound semiconductor cluster.

The facility has the capacity for 100 machines. This would double IQE's current global number of machines. Each machine costs several million US dollars.

While IQE, which has its global headquarters in Cardiff, never comments on the identity of its customers, such a lucrative contract win with Apple - which will run into millions of pounds - is expected to led to its technology being used in a range of devices and sectors, including medical and driverless cars.

For example Apple was the first company to put cameras in their phones, and now they are standard in all mobile devices. The same could be true of 3D sensors.

IQE has seen its share price rocket over the last year by more than fourfold.

This time last year it's share price was 26p, but is currently trading at 146p.

On market capitalisation IQE is now close to a huge £1bn valuation.

Last week it confirmed it has significantly increased investment in capital expenditure and product development from £7.6m a year earlier to £15.4m for the six months to the end of June this year, with its chief executive Dr Drew Nelson saying its trading outlook had never looked better.

IQE said the investment is supporting the expected mass-market adoption of VCSEL wafers.

While not referring to any deal with Apple, Dr Nelson said: “The compound semiconductor industry is moving through an inflection point. Many of the key innovations that are taking place in the technology world would not be possible without the advanced properties of compound semiconductor materials.

“Indeed, compound semiconductors are the fundamental enabler of innovations such as 3D sensing, biometric sensors, electric and autonomous vehicles, high-speed wireless and optical communications, and advanced manufacturing.

“IQE has developed an unparalleled breadth of materials IP [intellectual property], which position it to prosper from the inflection that is taking place in our industry. Our broad portfolio of IP is a powerful competitive advantage.

“IQE’s outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead.

“The breadth and depth of customer engagement underpins the board’s confidence in approving the capacity expansion plan, which provides a flexible and cost-effective route to significantly scaling-up in our business over the next few years.”