| On Feb. 17, the Samsung Group said that it will set up an LED production company in April by spinning off the LED business of Samsung Electro-Mechanics into a joint venture, according to recent news reports on Nikkei Business Daily and Routers
The new company, called Samsung LED for now, will be established with capital of 290B won (18.3B yen) as a 50-50 joint venture between Samsung Electro-Mechanics and Samsung Electronics Co. The new company will be positioned as a subsidiary of Samsung Electro-Mechanics.
By forming this joint venture, the Samsung group plans to increase its competitiveness in the development of LEDs, and Samsung Electro-Mechanics, a producer of electronic parts, plans to be able to lighten its capital spending burden in the LED business. |
