Norwegian semiconductor firm Nordic Semiconductor fell as much as 6.7 percent after its customer Dexcom announced plans to integrate chips from competitor Silicon Labs into its G7 glucose monitoring system, alongside existing components from Nordic Semiconductor.
Dexcom's current G7 model utilizes Nordic Semiconductor chips, while a new variant is set to feature Silicon Labs hardware, according to a filing with the U.S. FCC reported by Bloomberg News.
DNB Carnegie noted that this marks the first public confirmation of Dexcom's dual-sourcing strategy for Bluetooth Low Energy chips in its flagship product.
The brokerage estimates that Dexcom accounts for approximately 10 percent of Nordic Semiconductor's current revenue and views this development as a potential headwind for the company.
Nordic Semiconductor is specialized in the design, manufacturing and marketing of semi-conductors. Net sales break down by activity as follows:
- sale of semi-conductor components for wireless communication products (95.3%): for use in computers and tablet PCs, mobile electronic devices, RFID appliances and electronic products for the general public;
- sale of long-range connectivity components for connected objects (3.3%);
- sale of integrated circuits (0.5%);
- other (0.9%).
Net sales break down by end product applications between consumer electronics (60.1%), industry and healthcare (36.8%) and others (3.1%).
Net sales are distributed geographically as follows: Europe (8.7%), Asia/Pacific (68.1%) and America (23.2%).
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