Wolfson has had its chips with major player as customer goes elsewhere

WOLFSON Microelectronics, the Edinburgh chipmaker, revealed it has suffered a blow after one of its major "tier one" customers chose not to use its products.

It said that it has been shunned by a customer for its next generation portable media player that is expected to be launched in the summer.

Wolfson has previously had its chips used in Apple's iPod, as well as in satellite navigation systems, digital cameras and headsets.

Despite the blow, the firm said revenues from applications other than portable media players grew by 22 per cent in 2007.