Info
Info
News Article

Samsung To Scale Back LED Lighting

Samsung Electronics will cease its LED  lighting business outside of South Korea, scaling back what was identified as a key growth business four years ago, according to a news report by Reuters.

LED, rechargeable cells for hybrid electric cars, solar cells, medical devices and biopharmaceuticals were five areas singled out by the Samsung Group in 2010 as new growth drivers. At the time, the group forecast the businesses would generate £29.5 billion in annual revenues by 2020 for its affiliates including Samsung Electronics.

But, says the Reuters report,  Samsung Electronics has struggled to gain traction in the LED lighting market, failing to loosen the grip of established rivals such as Philips and Osram in advanced markets while facing mounting margin pressures from Chinese competitors in emerging markets.

Samsung Electronics will remain active in the LED industry through the LED component business,  focusing on areas such as backlighting for displays of consumer products like televisions.

IHS's market analysis

"In recent weeks, news had been circulating that Samsung was planning to announce it would leave the LED lighting business altogether. While the new development stopped short of a complete divestment with Samsung continuing to keep its LED luminaire business, the news is proof that increasing competition from lower-priced Chinese competitors is making the overall LED market less profitable for most manufacturers, " said  Stewart Shinkwin, market analyst for lighting & LEDs at IHS Inc in his latest research note.

According to Shinkwin, the LED luminaire (fixture) market has not seen the same price competition that has plagued the LED lamp market. LED luminaire manufacturers have managed to maintain higher margins as products are more differentiated. "For all its heft, however, Samsung has not also been able to benefit from its vertically integrated supply chain, in which the company provides components for its own internal divisions to market to external markets."

A few years ago, the low-priced products from the Chinese were generally of inferior quality in terms of lifetime, efficiency and colour rendering, says Shinkwin. But the LED lamps from China today are comparable in performance while remaining significantly cheaper, forcing many high-end LED lamp manufacturers such as Samsung to drop prices significantly and to accept lower margins. The margins, in turn, have now become unsustainable for a number of suppliers.

"Samsung's pull out is not the first such move by a company in the LED market. In the last 12 months Toshiba shelved its LED lamp market in the United States and now supplies to just Europe and Asia. Toshiba's move stemmed from its inability to obtain the market share it had initially hoped for, in the wake of stiff competition from rival such as Cree, Feit Electric, Osram Sylvania, Philips and TCP."

Samsung will still look to maintain and develop its LED lamp business in its native South Korea, but pulling out of the global LED lamp market could have repercussions on its total LED component business supplying the LED packages and modules for its lamps, Shinkwin concludes.



AngelTech Live III: Join us on 12 April 2021!

AngelTech Live III will be broadcast on 12 April 2021, 10am BST, rebroadcast on 14 April (10am CTT) and 16 April (10am PST) and will feature online versions of the market-leading physical events: CS International and PIC International PLUS a brand new Silicon Semiconductor International Track!

Thanks to the great diversity of the semiconductor industry, we are always chasing new markets and developing a range of exciting technologies.

2021 is no different. Over the last few months interest in deep-UV LEDs has rocketed, due to its capability to disinfect and sanitise areas and combat Covid-19. We shall consider a roadmap for this device, along with technologies for boosting its output.

We shall also look at microLEDs, a display with many wonderful attributes, identifying processes for handling the mass transfer of tiny emitters that hold the key to commercialisation of this technology.

We shall also discuss electrification of transportation, underpinned by wide bandgap power electronics and supported by blue lasers that are ideal for processing copper.

Additional areas we will cover include the development of GaN ICs, to improve the reach of power electronics; the great strides that have been made with gallium oxide; and a look at new materials, such as cubic GaN and AlScN.

Having attracted 1500 delegates over the last 2 online summits, the 3rd event promises to be even bigger and better – with 3 interactive sessions over 1 day and will once again prove to be a key event across the semiconductor and photonic integrated circuits calendar.

So make sure you sign up today and discover the latest cutting edge developments across the compound semiconductor and integrated photonics value chain.

REGISTER FOR FREE

VIEW SESSIONS

Info
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in:
 
X
Info
X
Info
{taasPodcastNotification}
Live Event