With 120 years of history of the Royal Holland Philips (Philips) also said on September 23rd that it would spin off lighting business to set up a new company, before Philips already in July of this year will be under the LED packaging division and Lumileds automotive lighting division independent integration has become the new company. This event in the industry was Melaleuca waves stirred up.
Philips has the global lighting market the first lighting brand and the highest market share, but in recent years the profitability and not with its leadership position in compliance, excessive competition in different market environment, EBITA (earnings before interest and tax before amortization) below 10% for a long period, especially to the Asian challenge. Asia Inc has lower cost and higher efficiency advantage, in the electronic and semiconductor industries played most incisive, when the traditional lighting is gradually replaced by LED lighting, is gradually eroded the competitiveness of Philips lighting, also forced Philips big movement split lighting business, adjust the organizational structure measures.
The following impact PHILPS spin off lighting business to the overall LED lighting industry:
Lighting industry will face a massive transfer of tide
The PHILPS group has 113000 global employees, organizational structure is too large caused by bureaucracy effects, offset by the benefits of economies of scale. OSRAM to SIEMENS after independence, has launched a large-scale layoffs, layoffs of more than a year to tens of thousands of people, while PHILPS spin off after the same job cuts is likely to launch process. According to PHILPS said the new company after the split will save the cost of 100000000 euros in the next year, and further save the cost of 200000000 euro in 2016, means that the lighting industry will face a new wave of talent of the transfer trend.
On behalf of the factory business will have the opportunity to become shareholders of PHILPS lighting
PHILPS lighting business and Lumileds from the group after independence, would not rule out separately listed, through the listing and financing the introduction of other shareholders, will help to reduce the risk of the PHILPS group, and the independence of two of the world's leading companies, will have more autonomy in decision-making mechanism, should be to the rapid change of market.
On the other hand, into the field of LED lighting for many Asian manufacturers, has long been a supplier OEM factory or components of PHILPS, even illumination pathway competitors, once PHILPS release shares, these Asian factories or competitors will have the opportunity to turn over to become shareholders, share PHILPS years of accumulated results.
There is a substantial change in the short term will not supply chain LED
Of most concern as to whether the LED industry PHILPS lighting supply chain will change in the future, I believe that in the short term will not change much. LED began purchasing decision dominance has been from the PHILPS lighting to Lumileds from last year, ahead of Lumileds listing plan preparation, have the too big change in Lumileds prior to the listing of the short term LED supply chain purchasing decision will not.
At present, firms in Taiwan and Mainland China are first-line LED foundry in the supply chain of Lumileds, once the Lumileds and PHILPS lighting independent after the listing, the new shareholders in reshuffle will be to produce a new wave of the future supply chain.
