In the right place, but still a target for acquisition

Sir Hossein, in his keynote address to Future World Symposium, suggested semiconductor companies take £18 of every £100 spent by the consumer. "It is important for UK companies to make sure they are in the right place in the supply chain," he claimed and suggested that 'right place' is to be a fabless supplier to the consumer electronics sector – an exact description of Wolfson. Wolfson has been a stand out amongst UK electronics companies, developing leading technology since it spun out of Edinburgh University in the 1980s. Even so, it has struggled over the last few years as the consumer electronics market has been the province of fewer, larger suppliers. While it has won 'sockets' in a number of leading handsets, Wolfson has also seen its technology 'bumped' in favour of that of rivals. It found itself in the classic 'no man's land', where it was big enough to stand out, but small enough to be a take over target. It seems as if the UK might just be starting a debate about takeovers of UK companies and the effect these might have. The proposed takeover of pharmaceuticals company AstraZeneca by Pfizer is pushing this discussion. While a free market oriented government might be expected to stand aside and let the shareholders decide a company's fate, it seems there is much activity 'behind the scenes' aimed at ensuring that, should its bid be successful, Pfizer commits to investing in AstraZeneca's UK operations. The suspicion may be that Pfizer is more interested in the IP, rather than the people or facilities. But that's the pharma world. Wolfson is a leading brand for those building consumer electronics products, but not a name instantly recognised by consumers. ESCO – the Electronic Systems Community – is currently wondering why the UK can't build globally dominant consumer electronics companies. If we did have those brands, would companies like Wolfson be less susceptible to acquisition?