Samsung Electronics plans to stop its LED lighting business outside of South Korea, scaling back a major business highlighted four years ago, reports Reuters.
In future, Company will remain active in the LED industry through LED component business and it will focus on areas such as backlighting for displays of consumer products like televisions, stated Samsung Electronics authorities.
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In 2010, Samsung recognized five areas incorporating LEDs including rechargeable cells for hybrid electric cars, solar cells, medical devices and biopharmaceuticals, as new growth drivers.
So far, Samsung affiliates have seen limited returns from the five new growth areas.
During this period, the group forecasted that the businesses would generate 50 trillion won ($47.5 billion) in annual revenues by 2020 for its affiliates including Samsung Electronics.
Samsung Electronics has fought to increase purchase in the LED lighting market.
However, the competition from established rival groups such as Philips and Osram, in addition to escalating margin pressures from Chinese competitors in emerging markets was high.
While Samsung SDI is supplying German premium automaker BMW with electric vehicle battery cells, Samsung companies are trying to generate revenues from other businesses such as solar cells.
Developing or identifying new growth drivers will be a key test for Jay Y. Lee, heir-apparent of Samsung according to experts.
The revenue contribution of LED lighting to the company had been small, according to company spokesman.
Sabeena Wahid
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