Although previously identified as a key growth area, Samsung, the South Korean multinational has revealed it is ceasing to operate its LED business, in overseas marketing, concentrating soley on national supply.
It appears the decision has come about due to price wars and is in line with its main business opponent Philips recent similar decision. Unsurprising, competition from Chinese manufactures is playing its part in the conclusion to cease production for outside markets, despite an obvious LED boom, in Asia particularly.
Samsung and Philips are not the only companies scaling back. German firm Osram AG have recently announced it would shed 800 jobs in a bid got cut costs although that part of the business will not be folding.
Samsung has commented that they will still be functioning in the LED sector but more from the LED component business and in the areas of backlighting for consumer products.
The problem of identifying new areas of growth for the company remains. Four years ago it championed pursuing rechargeable cells to be used for medical devices, solar and even hybrid electric cars, proffering revenues of trillions for its subsidiaries but developments in this area have yet to find their feet.
The search for growth is going to provide some testing times for new chairman Jay Y Lee who is expected to take over from his father sometime in the future.
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