Digitimes Research: Philips to invest EUR2 billion in green products
Fang Lin, DIGITIMES Research, Taipei [Thursday 19 January 2012]
Third-quarter 2011 revenues of the lighting business unit in Philips were EUR1.886 billion (US$2.4 billion), a 8.1% increase on quarter and 32% on year. Sales from LED lighting accounted for 16% of total third-quarter 2011 revenues.
Philips Lumileds, a subsidiary of Philips, began to produce 6-inch epitaxial wafers in December 2010. Philips Lumileds obtained the rights to rent land by the Banyan Lepas Airport in Malaysia in February 2011 to expand production lines and set up an R&D center. Philips plans to invest EUR2 billion through 2015 on green products. In particular, Philips hopes to develop lighting products by increasing energy efficiency. The firm also hopes by 2015 that sales of LED lighting will reach 50% of total revenues.
Philips has been developing OLED lighting. In May 2011, Philips announced the investment of US$57 million in Aachen, Germany to expand production of OLED lighting panels. Yields are expected to be achieved in 2012 and capacity to be expanded by 10-fold. Philips's goal is to achieve an OLED panel brightness efficiency of 120lm/W by 2019.
Revenues from emerging markets for Philips' lighting business unit have been comparable to that of markets such as North America and Western Europe. Emerging markets such as China, India and Southeast Asia have been growing rapidly and have become important revenue sources for Philips.