Global top brands will continue with drastic restructurings of their LED-business in 2016. Back in 2015 Philips already made the decision to sell of its lighting division called “Lumileds”.

Considering the dramatic decline of prices within the LED-industry during the last 5 years, Philips announced to focus on its more profitable business with consumer electronics and medical equipment in the future. 

A 2.8 billion agreement has already been made in 2015 with Chinese a Chinese consortium called GO Scale Capital, but this deal was ultimately stopped by the Committee on Foreign Investment in the United States (CFIUS), an institution which supervises foreign investments and acquisitions and resulting “national threats” for the United States. The latter was possible, because Philips runs a factory in San Jose (USA). Nevertheless Philips has announced to continue its effort to sell off its lighting division, a plan which is likely to be achieved in the near future. 

 

 

Meanwhile Osram has announced to sell off its lighting fixture division consisting of the two units “Lamps & Ballast” and “LED lamps & systems”. In future the company will focus onto the units “Semiconductor”, “Specialty Lighting” and “Luminaires & Solution” a decision which its CEO Berlien described as “moving from a simple product to solutions and services”.  Connected lighting within the internet of things (IoT) as well as data transmission through light via LiFi are two future technologies Osram is furthermore going to focus on. As in the case of Philips, a number of mainland Chinese companies are supposed to acquire Osram’s division which sells conventional LED lighting and bulbs.

Finally General Electric (GE) has announced to dump its CFL-business and to focus on LED in future. As GE has explained, LEDs today cover less than 10% of of market share, but by 2020 will be applied in more than 50% of residential areas, a development which will be accompanied by 3- or 4-fold decline of over the next 4 years.gm.