Philips sells majority stake in LED components business

Philips sells the majority of the shares in its own LED components division to a Chinese-American investment company. The company has announced that. Philips holds a 19.9 percent share of the former industry.

If the takeover is approved, the Chinese-American GO Scale Capital will own 80.1 percent of the shares in the LED components branch, Philips reports. The division, which makes components for LED lamps and lamps in cars, will continue under the name Lumileds. Philips will receive 2.9 billion dollars for the shares, or 2.7 billion euros.

Philips will still keep its Lighting Solutions branch, which makes the Hue, Ambilight and Wake-Up Light, among others. “It’s really about the branch that makes the components for LED lamps and, for example, headlights in cars that we sell,” says Philips spokesman Steve Klink. The Lighting Solutions branch will continue to work together with the components branch, the company emphasizes.

In recent years, Philips has also sold its TV branch and audio branch, although those former Philips branches still license products under the company’s brand name. Philips has already indicated that it wants to focus on two markets: health and light.