Wolfson to become Samsung's main audio partner in landmark deal

Wolfson Microelectronics, the mixed-signal semiconductor group which makes components for gadgets and consumer electronics, said on Thursday that it will become Samsung's primary audio partner after signing a new agreement with the South Korean tech giant.

The companies have signed a multi-year IP license and a component supply agreement which will see Wolfson make audio parts for Samsun's Galaxy range of smartphones and tablets including the Galaxy S4 in 2013.

The news comes on the same day that Samsung launched its new 6.3 inch Galaxy Mega smartphone, its biggest mobile yet which is aimed at those watching videos or running two apps alongside each other.

Wolfson's Chief Executive Officer Mike Hickey said: "This is a significant milestone for Wolfson, and we are delighted to be making this announcement.

"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."

The stock was up 6.1% at 180.38p in afternoon trade following the announcement.

Shares could have been given a lift by new data from tech-research firm IDC which showed that worldwide PC shipments fell 13.9% year-on-year in the first quarter, the largest drop on record, as consumers turned away from traditional desktops towards smartphones and tablets.