LG Innotek to Discontinue LED Power Supply Unit Production
LG Innotek, a key subsidiary of LG Group, has announced its decision to stop producing switching power supply units (SMPS) for LED lighting components. This move, which is expected to take place in 2018, comes as part of a broader strategic shift within the company. The LED division, which had been facing declining performance over the past few years, has struggled with decreasing revenues and mounting competition in the global market.
According to financial reports filed with the Korea Financial Supervisory Service, the revenue from LG Innotek’s LED business unit has shown a consistent downward trend. In 2014, the division generated approximately 1.04 trillion won (around $976 million), but by 2015, this dropped to 778.7 billion won, and further to 648 billion won in 2016. Even in the third quarter of 2017, the figure stood at 5,101.7 billion won, reflecting an annual decline of 4.18%.
Since its establishment in 2000 at the Gwangju Plant in South Korea, LG Innotek’s LED division has primarily focused on supplying LEDs for mobile devices, including applications such as notebook backlighting, LED lighting, electronic signage, and TV backlighting. Additionally, the company was a major player in the LED driver market, providing SMPS solutions that convert AC power to DC efficiently. However, as LED technology continues to evolve, new demands have emerged for more advanced power drive systems.
Meanwhile, Siemens reported a 12% increase in first-quarter profits, reaching 2.2 billion euros, driven largely by the sale of its stake in Osram Licht AG. The German multinational announced on October 4, 2017, that it would sell 17.34% of its shares in Osram, marking the end of a long-standing partnership. This transaction contributed significantly to the company's improved financial results, alongside reduced tax expenses.
In the same period, Siemens’ total revenue rose by 3% year-on-year to 19.82 billion euros. While industrial business revenue fell by 14% to 2.2 billion euros, the order book grew by 14% to 22.48 billion euros. The company remains confident about its future performance, forecasting an industrial profit margin of 11% to 12% for fiscal year 2018, with earnings per share expected to range between 7.2 and 7.7 euros.
As both companies adjust their strategies in response to market changes, the lighting and electronics industries continue to evolve rapidly, shaping the future of power supply and LED technologies.
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