Samsung LED Business Profit Rebounds


News Source: Business Korea

Once considered the top business to sale off, Samsung Electronics LED business has made an impressive turnaround recently, reported Business Korea.

After suffering years from low-priced competition from Chinese rivals, the Korean electronic giant’s LED business unit from its Device Solutions (DS) division has started to recruit R&D staff for the first time after a major downsize at the end of 2015.

Market rumors that Samsung Electronics intends to sell the business has spread on the market for some time, but the new hires has put an end to market rumors.

Samsung LED business is gradually transforming its business focus from LED backlight units, used in TVs, smartphones, lighting modules and flash components, to pushing into image sensors, automotive electronic equipment business, and other recognition sensors in the future.

Previously, the LED business was considered one of the five major growth businesses, but last year, the company had considerably slimmed down its LED business, downgrading from the Business Unit to Business Team and readjusting its workforce.

Chinese competitors low-priced products has been cited as the main driver behind its LED business transformation, as profits were hurt from intense price wars.

Additionally, market rumors about Samsung Electronics interest in selling its LED business after the business rights of the LED business was recognized at “0”, and the company recorded more than KRW 79 billion (US$69 million) in losses in its accounting book last year.