Samsung Electronics will reportedly withdraw from the global LED lighting market due to low-price pressure from China-based makers, while Taiwan-based TSMC Solid State Lighting will reportedly cease operations, according to industry sources.
As Samsung is at a disadvantage in terms of technology and patents compared to Japan-based Nichia, and has relied on low quotes to compete, the sources said. However, China-based makers, by virtue of government subsidies for production equipment, have offered even lower quotes to compete with South Korea-based makers including Samsung, the sources indicated.
TSMC Solid State Lighting, a wholly-owned subsidiary of Taiwan Semiconductor Manufacturing Company (TSMC), adopts silicon substrates instead of sapphire wafers to produce LED epitaxial wafers and chips, the sources said. TSMC Solid State Lighting has reshuffled personnel and its main clients, such as LED lighting lamp maker Leadray Energy, have shifted orders from the company to other suppliers, the sources noted. TSMC Solid State Lighting will reportedly quit operations and sell production equipment to LED maker Advanced Optoelectronic Technology (AOT), a member of the Foxconn Group, the sources indicated.
In response to the reports, TSMC Solid State Lighting declined to comment but said it maintains regular operations.