Philips had been intending to sell its Lumileds LED manufacturing business to a China-led private-equity group. However, US authorities have forced Philips to cancel the $3.3 billion deal.
Announced in early 2015, Philips was to sell an 80% stake in Lumileds to GO Scale Capital. However, the Committee on Foreign Investment in the United States (CFIUS) has blocked the sale on the grounds of national security. The LED components are largely used in general lighting and smartphone flash lights. However, the material deposition techniques used at the San Jose facility could be used to fabricate components used in many applications – including some military.
Philips will now pursue other interested parties “in exploring strategic options for Lumileds”.
