Summit Semiconductor (NASDAQ: WISA) announced on Thursday that the company is continuing on its strategic growth initiatives with the addition of both Sound United and Eastech to their Wireless Speaker and Audio Association (WISA) roster. These two companies add to the already significant growth in membership with major suppliers, manufacturers and speaker brands throughout the audio industry targeting home theater and business opportunities that can utilize WiSA’s 5.1 quality sound experience.
The Sound United group is comprised of high-quality brands that include Denon, Marantz, Polk Audio, Classe’, Definitive Technology and Polk BOOM. Additional names in the United Brand arsenal include HEOS and Boston Acoustics. The membership into the WiSA association will allow each of these unique brands to deliver high quality, wireless 5.1 sound and also provide access to Wisa’s specification, technical support, and testing protocols. More importantly, the membership will allow Sound United access to manufacturing partners to bring interoperable, wireless home theatre products to the market.
Also announced, Eastech will utilize the WiSA technology to enhance its position as a total acoustic solution provider to maintain its place as a leading developer and manufacturer for top-tier brand names in the consumer electronics industry. The membership into WiSA will also help to facilitate the expansion of Eastech’s footprint in Asia-based manufacturing centers with Hansong and GGEC members of WiSA as well. With the growing membership in Wisa, manufacturers will be benefitted with integration technologies and efficient product development processes that perpetuate quality production and system integration qualities.
In the last year, Wisa has added major brands that include Harmon International, Xbox, VOXX international, Goldenear, Electrocompaniet, Almando Primare and Infineon Technologies. To date, the WiSA Association consists of more than 30 member brands that include the world’s top manufacturers and resellers of audio products. Their membership keeps each brand devoted to the development and promotion of WiSA-certified products worldwide that deliver high-quality, 5.1 performance with the added benefit of ease of use and set-up characteristics.
Booming Value For Summit
Summit Semiconductor, Inc. is intent on seizing opportunities derived from the development and sales of audio wireless chips, modules, and licensable IP. Moreover, the distinguishing feature for WISA is that they utilize the WiSA Association interoperability standards that enable consumers to enjoy studio-quality, 8-speaker sound wirelessly through a large variety of devices.
While several competitors are in the 2-speaker wireless space, few, if any, can offer the comprehensive package of services and capabilities that Summit Semiconductor can deliver through a portfolio of products and technology that emphasizes sound quality at affordable price points. In addition to the quality and technological advances that bring crisp, 5.1 quality sound to up to eight speakers, the “ease of set- up” and the system portability is a significant advantage as well.
Exemplifying “ease of set-up” through the utilization of WiSA standards, the often-complex process of installing and configuring numerous devices and cables is almost entirely eliminated. In most cases, an entire 8-speaker wireless system can be set up and functional in roughly 30 minutes. Additionally, the interoperability standards make all WiSA certified devices compatible with one another, eliminating the need for sourcing multiple components from different brands to function together at a high level.
Making Noise Into EOY 2018
The news on Thursday adds to the promise for WISA, who already has a robust IP portfolio in place and is well-positioned to become an emerging and breakout leader in the audio and home theater market. According to a report by Global Market Insights, Inc., market growth in the home audio market will grow from a valuation of around $10 billion in 2010 to an estimated $23.97 billion by the year 2023. As it stands today, Summit may be well suited to earn a substantial portion of that market over the next several years.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in WISA over the next 72 hours.