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Samsung Electronics Succeeds in Returning LED Business to Profit
Samsung’s LED Business
Samsung Electronics Succeeds in Returning LED Business to Profit
  • By Cho Jin-young
  • November 7, 2016, 02:00
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Samsung Electronics’ light-emitting diode (LED) business recently succeeded in turning a profit and is strengthening its workforce.
Samsung Electronics’ light-emitting diode (LED) business recently succeeded in turning a profit and is strengthening its workforce.

 

The status of Samsung Electronics’ light-emitting diode (LED) business has dramatically changed. The company’s LED business was considered the first unit to sell until recently due to China’s low-priced competitors. However, it recently succeeded in turning a profit and is strengthening its workforce.

According to Samsung Electronics on November 6, its LED business unit from the Device Solutions (DS) division is recruiting research and development (R&D) employees with experience from the 1st to the 22nd this month. This is the first recruitment in the sector after the LED business division was contracted to the business unit at the end of last year.

The LED business unit’s job posting is meaningful. There have been rumors that Samsung Electronics will sell the business for a long time but the company put an end to market doubts by hiring new employees.

Samsung Electronics recently released a new line-up of chip scale package (CSP) LED modules for spotlight applications. The CSP eliminates plastic molds, which cover LED packages, and metal wires, which connects substrates with light sources, to enable more compact designs and high credibility and price competitiveness. Samsung Electronics’ LED business unit manufactures backlighting units (BLU), which are used as the light sources of TVs and smartphones, lighting modules and LED flash components for cameras.

In particular, the unit is expected to push into the markets of various sensors, such as image sensors connected with automotive electronic equipment business and action recognition sensors, in the future.

Samsung Electronics’ LED business was considered one of five new growth businesses in the past. However, the company suffered from rumours of its withdrawl of the LED business in October last year and actually relocated its workers at major overseas subsidiaries to domestic offices, adjusting workforce, as Chinese competitors launched a great number of low-priced products, which led to the decrease in its division’s profitability. In addition, there have been rumors in the market that Samsung Electronics will sell the LED business after the business rights of the LED business was recognized at “0” and more than 79 billion won (US$69 million) were registered as damages in the account book, according to the company’s report last year.