In September, industry insiders revealed that Samsung Electronics has decided to exit the non-core areas of its Display Solutions (DS) division—specifically, its LED business—and has entered an organizational phase. This team has been responsible for producing LED components for televisions, lighting, and automotive applications.
In October, reports indicated that Samsung is redirecting its employees toward the semiconductor sector, focusing on power semiconductors and MicroLED technologies.
According to sources, Samsung’s LED business generates approximately 2 trillion Korean won (around $1.4 billion USD) in annual sales; however, the company has opted to concentrate on its core areas. South Korean media reported that Samsung might shift its focus towards power semiconductors and MicroLEDs, while currently ensuring a stable supply for its Visual Display (VD) division.
Potential Impact on Samsung’s VD Supply
South Korean media outlet KIPOST indicated that before phasing out its LED business, Samsung Electronics must ensure the supply of LEDs used by its VD department. This department sources liquid crystal displays (LCDs) using an “open cell” approach from suppliers such as Huaxing Optoelectronics and BOE Technology Group. The Backlight Unit (BLU) is procured externally, while the VD department produces LEDs directly. The LED business team supplies the largest quantity of LED chips.

Consequently, if Samsung Electronics liquidates its LED business, it may adversely affect the television operations of its VD division. Besides the LED business team, chip supplies can be sourced from other LED companies like Sanan Optoelectronics, Lumens, and Seoul Semiconductor. However, the challenge lies in the fact that the Samsung LED team has provided a significant proportion of high-end LEDs. Relying solely on external suppliers could lead to increased instability in the supply chain.
Apart from LEDs for television, the remaining operations pertain to lighting and automotive LEDs, although this proportion is reportedly small. In terms of automotive lighting, the Samsung LED team previously supplied Tesla with “Pixel LEDs” that employed flip-chip packaging technology. However, since Tesla has decided not to expand the application of Pixel LEDs, expectations for the automotive LED business have also diminished.
Focusing on Power Semiconductors and MicroLED Technology
Recently, interpretations suggested that this restructuring aims to streamline non-core areas within the DS division, focusing instead on power semiconductors and MicroLED technology. The existing LED business team is expected to be reallocated to power semiconductor and MicroLED initiatives, along with memory and foundry operations.
At the same time, some developers from the LED business team are in discussions with Samsung Display, which is developing LED-on-Silicon (LEDoS) technology as the next generation of display technology for extended reality (XR). This differs from the pilot project of OLED-on-Silicon (OLEDoS) in the current A1 and A2 production lines, as it involves different configurations of front-plane components.
The future development of LEDoS will require expertise in LED epitaxy and chip-related technologies. An expert in the LED industry commented, “When Samsung Electronics acquired Samsung LED in 2011, it attempted to divest the company but failed. Now, it has no option but to liquidate.”
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