Donald Trump tax break leaves UK iPhone chips firm quids in

The British chip supplier to the new Apple iPhone expects to reap the long-term benefits of President Trump’s sweeping $1.5 trillion (£1.1 trillion) tax reform bill approved on Tuesday night.

IQE, which provides tech for the iPhone X’s facial recognition features, today said the US tax overhaul would provide a “positive long-term financial benefit” despite a small reduction to a deferred tax charge.

The US Senate last night approved the reforms, the biggest for three decades, which will cut US corporation tax to 21% from 35%, putting it closer to the UK rate.

UK companies with big US revenue streams like British American Tobacco, Compass and Ashtead are expected to benefit from the tax move by Trump, which has proved controversial among Democrats.

IQE, based in Wales, upgraded profits forecasts today and said full-year sales would be at least £150 million.