PHILPS spin off lighting or lead to large-scale industry transfer tide

Following OSRAM (OSRAM) SIEMENS (Siemens) independent spin off listing, another lighting manufacturers in Holland Royal PHILPS (Philips) also announced in September 23rd will be the lighting business spin off the establishment of a new company, before PHILPS has been in July of this year's LED package business unit Lumileds and automotive lighting division integration becomes independent the new company.

TrendForce's green energy research department LEDinside said, PHILPS has the world's first brand lighting lighting market and the highest market share, but in recent years the profitability and not with its leading position in the match, excessive competition in different industry environment, EBITA (stand ahead of earnings before interest and tax) below 10% for a long period, especially to the Asian challenge. Asian companies have lower cost and higher efficiency advantage, in the electronics and semiconductor industry played most incisive, when the traditional lighting is gradually replaced by LED lighting, PHILPS lighting is gradually eroded the competitiveness, forcing PHILPS to spin off action lighting business, adjust the organizational structure to actively fight.

LEDinside analysis of the impact of PHILPS split lighting industry on the overall LED lighting industry as follows:

The lighting industry will face mass transfer tide

PHILPS group has 113 thousand employees around the world, too much bureaucracy caused by the huge organizational structure, offset the benefits of economies of scale. OSRAM will be independent of SIEMENS, has launched a large-scale layoffs, layoffs over a year more than tens of thousands of people, and after the spin off PHILPS is likely to launch the same layoffs. According to PHILPS said the new company after the split will save cost 100 million euros in the next year, and further cost savings of 200 million euros in 2016, means that the lighting industry professionals will be facing a new wave of change.

Asia on behalf of the business will have the opportunity to become a shareholder of PHILPS lighting

PHILPS lighting business and Lumileds from the group after independence, will not rule out the separate listing, listing and financing through the introduction of other shareholders, will help reduce the risk of the PHILPS group, and the independence of two of the world's leading enterprises will have more autonomous decision-making mechanism, cope with the rapidly changing market.

On the other hand, in the field of LED lighting for many Asian manufacturers, has long been the supplier factories or components of PHILPS, and even lighting pathway competitors, once PHILPS shares after the release, the Asian foundry or organic competitors will turn to become shareholders, share the accumulated years of PHILPS results.

LED supply chain in the short term there will be no significant changes

As for the LED industry is most concerned about the future of PHILPS lighting supply chain will change, LEDinside that there will not be much change in the short term. LED began purchasing decision dominance from PHILPS lighting to Lumileds from last year, Lumileds listed to prepare in advance for the planning, there are so much change in Lumileds before the listing of the short-term LED supply chain procurement decision will not.

At present, the first line of Taiwan and China LED manufacturers are Lumileds OEM supply chain, once the Lumileds and PHILPS lighting independent listing, the new shareholders will be stationed in the future supply chain to produce a new wave of reshuffle.

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