LUMENS (CEO Yoo Tae-kyeong) has built LED production facilities in Vietnam. Vietnam is where Samsung Electronics’ TV production facilities are located and this will help partnership between Samsung Electronics and LUMENS that has been supplying LEDs for TVs to become stronger.
LUMENS made an announcement on the 17th that it will be operating its facilities that are located in industrial complex in Binh Duong Province. It has built its facilities at a site with 10,000 pyeong by investing about $8.52 million (10 billion KRW) and prepared first manufacturing facilities. It is also preparing to construct extensions depending on market situations.
LUMENS is going to produce its major products such as LED packages and modules at these facilities. Although it also has facilities in China, it has also built facilities in Vietnam to increase its competitive edge. Vietnam is a country that is emerging as second global manufacturing base followed by China due to inexpensive personnel expense. Although its minimum monthly wage this year ($155) increased 12% from last year, it is about 40% cheaper than South Korea and China ($256 (300,000 KRW)). Because Vietnamese employees are also outstanding, productivity can be increased as well.
Partnership with Samsung Electronics is the reason why LUMENS decided to construct facilities in Vietnam. LUMENS is Samsung Electronics’ partner for Samsung Electronics’ TVs and it manufactures LED modules that provide light source for LCD TVs. Samsung Electronics is promoting Vietnam as its strategic base as it shut down its production base in Malaysia and transferred facilities. Samsung Electronics has also started mass-producing other household appliances such as air conditioners and refrigerators and is looking for other business opportunities.
LUMENS is a top LED business in South Korea along with Samsung Electronics, LG Innotec, and Seoul Semiconductor. It was established in 2004 and its sales surpassed $85.2 million (100 billion KRW) in just 6 years. In last year, it made $363 million (425.6 billion KRW) and $5.20 million (6.1 billion KRW) in sales and operating profit respectively in spite of bad market situations for LED. LUMENS is also building up its LED light business for cars and is currently developing micro LED that is seen as a next-generation display technology.
Staff Reporter Yun, Keonil | benyun@etnews.com
