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Integrated Device Technology shares tumble on worry of loss to rival

(Reuters) - Shares of Integrated Device Technology fell 9 percent on Tuesday on worries that cellphone chip developer Qualcomm Inc had chosen On Semiconductor technology instead of an Integrated Device design for wireless charging technology.

Several analysts said the sell-off was driven by a research note from Dougherty & Co that suggested Integrated Device Technology had lost out on Qualcomm business to On Semiconductor. The research note, which cited unnamed industry participants as its sources, said, however, that Integrated Device could still win business at Qualcomm.

Representatives at Integrated Device, Qualcomm and On Semiconductor were not immediately available for comment.

The sell-off came a day after two of three global industry groups vying to establish a dominant standard for wireless charging technology said they had agreed to merge.

The Dougherty note said that while Integrated Device likely faces new competition, "IDTI has time to win its way back into a QCOM reference design and sell lots of Qi chips in the meantime."

Harsh Kumar, an analyst with Stephens Inc, who has an "overweight" rating on Integrated Device Technology, said the sell-off was overblown.

"I think there's some miscommunication in the marketplace," Kumar said. "We fully expected the inclusion of other vendors such as On Semi. It doesn't mean that other vendors are kicked out."

Integrated Device Technology shares were down $1.71 at $17.19 in early afternoon trade. Volume was five times the 10-day daily average.

(Reporting by Sinead Carew and Saqib Ahmed; Editing by Leslie Adler)