According to South Korean media Newsway, Samsung's Device Solutions (DS) division plans to phase out LED lighting production at its Giheung campus by 2030. Most employees are expected to be transferred to the company's semiconductor facilities in Cheonan or Onyang, South Chungcheong Province.
Samsung's LED operations encompass three primary areas: lighting equipment LEDs, television LEDs, and automotive LEDs.
Reports suggest that Samsung will first halt production of lighting equipment LED chips, followed by winding down its lighting business within the CSS division in the first half of 2026. The company will then cease television LED lighting operations in the second half of 2026 and aims to fully exit the automotive LED lighting sector by the end of 2030.
Sources including The Korea Herald and Samsung Electronics' financial reports and industry analysis indicate that Samsung's LED business has struggled with profitability for a while. Consequently, executives have decided to redirect resources to more promising sectors, with most employees being reassigned to the semiconductor and other divisions.
This shift underscores the LED business's prolonged underperformance and the erosion of its market share due to intense price competition from low-cost Chinese products, smaller enterprises, and established foreign brands like GE, Osram, and Philips.
On the other hand, industry reports, including those from Huaon, highlight substantial growth in China's LED market from 2016 to 2024. The market size increased from approximately CNY50 billion (US$7 billion) to CNY150 billion, with an annual growth rate exceeding 10 pp. The export share of Chinese LED lighting products has now surpassed 60%, contributing to heightened competition in the global market.
Key Chinese players shaping this growth include Nationstar Optoelectronics, BOE, and Sanan Optoelectronics, which have significantly advanced technology and market presence. Nationstar, NVC Lighting, and Sunshine Lighting lead in LED lighting equipment, while BOE and TCL Lighting are prominent in television LEDs. In the automotive sector, BYD has emerged as the major player.
China's LED market expansion and rising export share have spurred technological innovation and cost control worldwide, while Samsung's gradual exit underscores the mounting pressure on traditional companies amid intensifying global competition.
Article translated by Levi Li
