The hottest international giants have broken their

2022-08-22
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International giants have "broken their arms" one after another. Is there an opportunity for Chinese led enterprises

Abstract: a week ago, Ge also officially announced the sale of its lighting business. In addition, OSRAM, which had previously successfully sold its light source business, and Philips, which sold Lumileds, international giants have frequently "sold themselves". Why? Does this mean that there is an opportunity for Chinese led enterprises

recently, according to media reports, Samsung Electronics is considering selling its led business. Tanchanglin, vice president of Samsung led, denied this report. Although it is only an oolong, it also shows the industry's concern for the follow-up development of Samsung led. A week ago, Ge also officially announced the sale of its lighting business. In addition, OSRAM, which had previously successfully sold its light source business, and Philips, which sold Lumileds, international giants have frequently "sold themselves". Why? Does this mean that there is an opportunity for Chinese led enterprises

related events

Samsung led denies considering selling China's led business

according to the Korean Herald on June 19, Beijing time, Samsung Electronics is considering selling its led business unit in mainland China - Tianjin Samsung led Co., Ltd. - to a private equity company located in Hong Kong, China

Samsung's businesses sold this time include LED packaging factories and facility sites. Hong Kong private equity companies are currently conducting due diligence

the bell, a South Korean media, reported that Samsung is likely to restructure its led business on a large scale after selling its led business unit in mainland China

in recent years, Samsung's led business sales have been weak, mainly due to competition from cheaper products from Chinese competitors. After selling it, Samsung is expected to outsource the production of LED panels to other companies

after several years of declining profits in its own business, LG inot, a component manufacturer of LG Group, recently began to purchase LED products from external manufacturer partners

then, according to the latest report of ledinside today, executive vice president/Department Bu head of Samsung led solemnly denied the news. Tan, vice president, said that the news was completely illusory. At present, the Tianjin plant of Samsung led in China mainly focuses on the application of LED backlight, vehicle lighting and vehicle led. Including LED packaging components, as well as LED module business, because the plant is equipped with highly automated Goldilocks automotive materials, new technologies and new products, large-scale point packaging and high-precision SMT printing equipment, it has an important strategic position in the SamSung group

not only that, in response to the content mentioned by Korean media that "Samsung led business is deteriorating, leading to Samsung Group will make a substantial adjustment", deputy president Tan of Samsung led also made a supplementary explanation. Vice President Tan clarified in particular that Samsung's led business had begun to make profits two years ago

in addition, he pointed out that according to the internal statistics of Samsung led, the LED market share of Samsung led in the world has reached the second place in the world

Ge officially announced the sale of lighting business

the quality of Ge lighting springs and elastic components. CEO Bill Lacey recently sent an email to ge lighting employees from the Department affected by price factors to announce the sale of Ge lighting. Rumors about the possible sale of the lighting business began a few months ago and were confirmed last Thursday. On the morning of June 8, Bill Lacey, CEO of Ge lighting, pointed out in his internal email that today, Ge officially began to discuss the sale of Ge lighting business with potential buyers

bill Lacey stressed that the negotiation is still in its early stage, and Ge lighting "can consider several strategic options"

Bill Lacey also said that during this period, Ge lighting must continue to operate this business and serve customers. "Starting today, we will work separately with our business team to have a transparent dialogue with our customers and ensure that they understand our priorities and the strategy remains unchanged."

Bill Lacey said that in the future, the company will simplify its portfolio and focus on core digital industrial assets

the email also mentioned the home appliance business previously sold by GE. "You will see the team prosper under the new ownership and share the same mission." In 2016, Ge sold the household appliance industry to Qingdao Haier, which is controlled by Haier Group, a new chapter of China Pakistan Relations with "amazing" achievements

last August, Ge lighting announced the termination of its business activities in Asia. At that time, many insiders predicted that GE might completely divest its lighting business. Reason: in 2016, GE's lighting business, including commercial lighting, generated about $2.2 billion in revenue, less than 2% of the total revenue; The combined revenue of energy management and lighting accounts for only 12%

why are international giants "breaking their arms"

although it seems that Samsung's choice to sell China's led business is a rumor, it is true that international giants have "broken their arms" one after another. For example, GE's official sale of lighting business is also the result of its decisive transformation into a digital industrial enterprise. After all, in GE's current territory, the overall lighting business revenue, including commercial lighting, is only about $2.2 billion, less than 2% of GE's total revenue. The continuous decline in lighting business revenue also makes Ge resolutely give up "chicken ribs" and choose more professional fields, more professional markets and more profitable products

of course, Ge is not the first to choose to sell relevant lighting businesses. As the iron triangle of traditional lighting giants, Philips, OSRAM and Ge, under the dual impact of mature LED lighting technology and product price war, the lighting business is declining, gradually becoming chicken ribs, tasteless to eat, but a pity to abandon. It is an effective way to sell this business or give full play to its maximum residual value. Philips chose to split its lighting business as early as 2014 and wanted to divest its lighting business. In May 2016, Philips Lighting went public and sold 25% of its shares; In December 2016, Philips also agreed to sell 80.1% of its Lumileds equity to private equity giant Apollo Global Management (American enterprise) for $1.5 billion. OSRAM sold its lighting business named after Lande Vance to a Chinese consortium led by Mu Linsen at a price of 500million euros. In addition, OSRAM revealed that it would also receive a patent license payment of up to 100million euros from the buyer's team for the use of its trademark rights in the next few years. Perhaps, Ge is not the last one - there have been rumors in the industry that Cree is considering selling related businesses

1. Asian market competition is too fierce, and "price war" bears the brunt

2. The profit of LED lighting application is low, and "chicken ribs" are resolutely abandoned

3. Moderately adjust "large and comprehensive", deeply cultivate "specialized and excellent" and focus on high profit areas. For example, OSRAM chose to "sell off" its light source business, largely because it will focus on the growth and innovation of three "core businesses" - special lighting, lighting systems and solutions, and optoelectronic semiconductors, which have their unique advantages and values

is there an opportunity for Chinese led enterprises

with the continuous decline of international lighting giants in the domestic market, compared with international lighting giants, the biggest advantages of Chinese local lighting enterprises lie in mature and perfect product sales channels, huge product production capacity, and understanding of China's local market, which international lighting giants do not have

on the other hand, domestic capital also buys related enterprises out bit by bit. For example, Feile sound plans to acquire Havells xiwannian, the world's leading lighting technology enterprise, by cash; Mu Linsen has successfully won the business of landvance (ledvance, OSRAM light source), and will start from its own light source advantages, jointly develop products with landvance in light sources and more lighting applications, and strive to become a leader in the global lighting market

domestic lighting enterprises have no perfect channels, but the accumulation of relevant lighting technology patents is very weak, which has brought many obstacles to the expansion of international business. Therefore, taking the acquisition as an opportunity to win the core technology and patents of foreign led enterprises, in order to have more and more say in the international competition

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