Asia Tech Wire (Oct 11) -- Samsung Electronics will exit the LED business and is ready to launch a complete organization restructure, according to Aju News.

Friday's report, citing industry sources, said that Samsung Electronics' Device Solutions (DS) division is in the process of a complete reorganization of its LED business.

As part of the reorganization plan, Samsung has made a strategic decision to completely exit its LED business.

Its LED business unit was previously responsible for the production and sales of LEDs for TVs, LEDs for smartphone flash lights, and LED modules for automotive headlights.

The report pointed out that although the LED business can bring about 2 trillion won in sales for Samsung each year, but Samsung Electronics believes that the business has lost its competitive advantage, decided to divest it in order to focus on power semiconductors and micro-LED business and other more promising core areas.

Staff in the LED business may be reallocated to power semiconductors, micro-LEDs, memory, foundry, and other business units.

Samsung entered the LED lighting business through the merger of Samsung LED Company as early as 2012, but decided to strategically withdraw from the business in recent years due to increased competition from low-priced products, making it difficult to secure profitability.

In addition, Samsung Electronics is considering breaking the traditional model of unified management by the headquarters and decentralizing personnel assessment to the production line, aiming to further enhance the operational efficiency of the organization and promote the company's overall business development.