SEOUL, KOREA - Samsung Electronics will withdraw from the LED (light-emitting diode) lighting business. It is based on the judgment that the domestic LED industry is designated as a business reserved for small-sized enterprises, which is too small for large companies like Samsung anyway. On October 27, the company announced that it would fold the LED lighting business at home and overseas.

 

 

 

 

It already notified major customers in North America and Europe that it would stop supplying the goods while transferring workforce in overseas offices to other divisions. A Samsung Electronics official said, "It is true that we have struggled to increase the share in major markets as European incumbents such as Philips and Osram have long dominated the LED lighting market. On the other hand, we've been squeezed by low-cost suppliers from China."

 

Since last year, Samsung has been actively promoting LED lighting devices overseas after launching 20-or-so new products including the smart light bulb. It took part in the Light and Building 2014 exhibition in Frankfurt in March this year to expand the customer base.

 

Samsung will, however, leave some of the LED business for specialty applications such as those for semiconductor and display purposes. Currently more than 90 percent of Samsung's LED sales revenue comes from automotive and electronic parts-related applications, including display backlight units and auto LED parts.

 

Source by : The Korea Economic Daily