Nordic Semiconductor in Norway is aiming for US$1 billion revenue in 2023 with a view to further doubling revenue by 2026.
However, the wafer allocation at foundry TSMC is limiting Nordic’s revenues and ability to reduce its order backlog. The company said that it is bringing up two additional foundries – Globalfoundries and Silterra – to broaden its availability of wafers. Devices are due to ship from both foundries in 2023.
The company made a net profit of US$33 million on revenue of US$200.2 million in the 2Q22. The quarterly profit was doubled on a year before and the revenue up 35.6 percent.
In 1H22 the company made a net profit of US$66.7 million on revenue of US$383.3 million. This was all despite the fact that revenue was capped by a limited supply of wafers.
“Although we pass a milestone with quarterly revenue above USD 200 million for the first time, our delivery capabilities continue to be severely negatively impacted by the persisting wafer shortage. Demand for our Bluetooth low-energy products is still significantly above current capacity, and with the current wafer constraints near-term revenue will continue to be determined by supply and not demand. We are working around the clock to find good solutions for our customers in this situation,” said Svenn Tore Larsen, CEO of Nordic, in a statement.
Nordic’s backlog of orders was valued at about US$1.7 billion in 4Q21 although it has reduced by 9 percent in the first quarter and by a further 9 percent to stand at US$1.395 billion in 2Q22.
Cellular IoT revenues were negatively affected by the unavailability of a filter component in 2Q22. The issue has been resolved and so Nordic expects significantly higher revenue in 2H22. The company is guiding for revenue of between US$190 million and US$210 million in the 3Q22.
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