Korean smartphone and tablet manufacturer Samsung has appointed Scottish microelectronics firm Wolfson as a primary audio partner.
Shares in the Edinburgh-based company spiked by more than 14% on Thursday’s morning opening price after Wolfson confirmed a new multi-year intellectual property and component supply agreement with the electronics major.
The new agreement means that Wolfson will be a major audio component supplier for the latest generation of iPhone-rivalling Galaxy smartphones and tablet computers.
The deal includes the new Galaxy S4 smartphone due to go on sale in the UK later this month, one of the most technically advanced handheld devices available.
The new tie-up extends an existing long-term relationship between the two companies which has seen Wolfson provide audio chips for the S3 smartphone and the first two iterations of its Note tablet computer.
Wolfson’s audio equipment range is critical to the firm’s health, accounting for 75% of the company’s income last year, and is central to its plans to return to profit.
The company made a $9.4 million loss on revenues of $179.7m last year, a significant narrowing from the $24.1m loss it booked at the end of 2011.
However, in February the company said it expected an upturn in revenues of up to 60% in the early months of the year as it continued to carve out opportunities for its technology.
The full extent of the firm’s deals have not been disclosed because of confidentiality clauses, but it is known that in addition to Samsung, electronic giants such as LG, Microsoft, BlackBerry, Motorola, Fujitsu and Sony are among its client list.
It has also long been suggested that Wolfson is working on projects with Apple, although that has never been confirmed by the company.
Combined annual global revenues from the microelectro-mechanical microphone systems and audio hub sector are estimated to be worth around £3.5 billion.
Wolfson CEO Mike Hickey was delighted to confirm the new association between the firms. “This is a significant milestone for Wolfson,” Mr Hickey said.
“Having worked closely with Samsung over recent years on their Galaxy range of tablets and smartphones, this agreement is a testament to our strong IP portfolio and our growing partnership, and we very much look forward to working closely together to continue to deliver exceptional audio in Samsung’s smartphones and tablets,” he added.
Shares in Wolfson closed up 9p last night at 179p.