Chipmaker DSP Group to Benefit from Galaxy S7 Sales

March 7, 2016 - Written By Tom Dawson

Samsung might well be a firm that can happily create their own Super AMOLED displays, their own memory and storage and their own batteries, but nobody can go it alone in the mobile industry of today. Samsung is smart to work with other manufacturers and suppliers to make devices like the Galaxy S7 the best they can be, and in the case of chipmaker DSP Group, the Galaxy S7 should help boost their revenues considerably. In a device as sophisticated and powerful as the Galaxy S7 or Galaxy S7 Edge, there’s a lot of different components that go into a flagship smartphone release, and as Chipworks recently uncovered, each small chip has a big role to play.

The DSP Group’s D4A1A chip is an audio processor that works alongside the Knowles 9291S microphone to deliver crystal-clear audio as well more accurate always-on voice recognition. It’s this chip that will net the DSP Group $2 – $3 Million during the month of March alone. This is a pretty big deal for the Israel firm, as the chipmaker made just $145 Million last year, which is fairly small compared to someone like Samsung. This new deal could account for a large uptick in the firm’s profits throughout 2016, and according to reports the firm makes around 70 cents to $1.00 for each of these D4A1A HDClear chips sold, which just goes to show us that even a small, inexpensive component like this has a role to play in something much larger, like Samsung’s latest and greatest smartphone.

Whether or not the Galaxy S7 and Galaxy S7 Edge are going to turn the DSP Group into a massive corporate entity in 2016 remains unclear, but it’s less than likely. This is perhaps more a neat little reminder that there are many firms and companies working in the background to produce the smaller cogs that become integral pieces of a much larger wheel in this mobile market. It also helps illustrate that while Samsung is one of the few mobile names out there that does do a lot on their own, they can’t do everything, and that even small players have a larger role to play.