Samsung to exit LED business
According to market research firm TrendForce, Samsung Electronics has begun restructuring its business, with the semiconductor division deciding to withdraw from the mainstream LED business, due to the group’s performance falling short of expectations.
The division will instead focus on core areas with better growth prospects, including power semiconductors and Micro LED technology
Samsung Electronics’ preliminary unaudited financial results released on October 8 for the third quarter of 2024, showed that the company’s profit and revenue for the quarter fell below market expectations. Sales were 79 trillion KRW (around $57 billion), a 17.2 percent year-on-year increase but lower than the market estimate of 81.57 trillion KRW ($59 billion). Operating profit was 9.1 trillion KRW ($6.6 billon), a 274.5 percent year-on-year increase but down 12.8 percent from the previous quarter, and also below analysts’ estimate of 11.5 trillion KRW ($8.3 billion).
At the beginning of 2023, Samsung established a special task force for power semiconductors, and by the end of the year, it further reorganised its operations, transforming the LED division into the Power Semiconductor Division.
In July 2023, Samsung announced that it would launch 8-inch GaN power semiconductor foundry services by 2025, targeting applications in consumer electronics, data centres, and automotive markets. As part of this plan, Samsung introduced German company Aixtron’s MOCVD system into its Giheung 8-inch wafer foundry, during the second quarter of this year.
