The boss of Apple supplier IQE has said he will be stepping down from the post after more than 30 years as the company enters into its "next exciting growth phase".

Dr Drew Nelson, who co-founded IQE in 1988, said he would step aside once the company had found a successor, and would then be taking up the role of president, an advisory post.

He said it was the "appropriate time" for IQE to have a new CEO, given the advent of technologies such as 5G and the Internet of Things - where devices can be "connected" to the internet and communicate with each other.

Growing uptake of such technology has driven revenue increases at companies including IQE, a Cardiff firm which develops compound semiconductors used in 5G modems and 3D cameras, and whose technology is used in Apple's iPhones.

Phil Smith, chairman of IQE said: "The transition is a logical step. Drew has been with the company a long time and he founded it - it is an opportunity for new leadership and for someone to take it to the next stage and get someone in to look at scaling the business to a greater degree."

In a trading update published alongside news of Dr Nelson's departure, IQE said it expected demand for 5G-related products to continue to grow over the next few years as the "mega-replacement cycle of 5G deployments" gathers pace.

It expects 2020 revenue to be up by at least 20pc on last year, surpassing £170m, ahead of earlier guidance.

The company said it had received its largest military and defence sector purchase order to date from the US in recent months, worth more than $10m (£7.5m).

“We are delighted to be reporting such a strong all-round financial performance," Dr Nelson said.

The update provided a bump to IQE's share price, which lifted more than 4pc in early trading.

It marks a turnaround for the company, which suffered turmoil earlier this year when the Covid-19 pandemic shut down smartphone assembly lines in China and hampered demand. Since then, however, manufacturing capacity has returned.

IQE also received a boost over the summer, when the Government confirmed it would be included in a £43m project to bolster technology development in Cardiff.