Philips Photonics, A VCSEL Subsidiary, Will Be Sold To Give Up Lighting Business Altogether.

- Dec 21, 2018-

Philips Photonics, Philips'growing VCSEL business, has agreed to sell a 100% stake in Trumpf, a German company, according to foreign media.——LED Christmas light

Ulm-based Pilips Photonics is a wholly-owned subsidiary of Royal Philips of the Netherlands. It is dedicated to providing vertical cavity surface emitting laser (VCSEL) technology for data communications, consumer and industrial applications. Its products are mainly used for applications such as smartphones, digital data transmission and autopilot sensors. The company currently has about 280 employees. Philips entered VCSELs in 2006 by acquiring Ulm Photonics from Germany and renamed it Philips Photonics.——LED Christmas light

Vertical Cavity Surface Emission Laser (pictured from Philips Photonics)

The acquisition came a month after Philips announced that it would expand Ulm's Vertical Cavity Surface Emission Laser (VCSEL) plant for the third time in three years. Not long ago, Philips Photonics proudly announced that it had reached a milestone of over a billion VCSELs. The company has begun to sell VCSELs in bulk to smartphone manufacturers, who can use these chips to unlock the phone's face recognition system and other functions.——LED Christmas light

Trumpf is an old family business headquartered in Stuttgart, Germany. Last year, its revenue was 3.56 billion euros ($4.06 billion). It produces machine tools, laser precision cutting equipment and lasers. It is a global giant in machine tools and laser technology. The acquisition of Philips Photonics will help it expand VCSELs, which compete with LEDs in some applications, such as face recognition, and are expanding its range of applications, including lidar guidance for driverless vehicles, medical imaging and optical fiber data transmission.——LED Christmas light

"Through this acquisition, we hope to open up new product areas and expand our existing product portfolio in strategic focus," said Nicola Leibinger-Kammuler, CEO of Trumpf.——LED Christmas light

Neither company has disclosed the agreed price, and the acquisition is yet to be approved by regulators. Philips and Trumpf hope to complete the acquisition in the second quarter of 2019.——LED Christmas light

It is worth mentioning that Philips, the Dutch giant, has started the process of selling and stripping its lighting business since 2014, including integrating Lumileds with the automotive lighting business to form an independent company, Lumileds, and selling it to Apollo, the US private equity fund, as well as forming an independent subsidiary of its LED and general lighting business, Philips Lighting, and listing it. Now it is renamed as Philips Lighting. For Signify. But with the sale of Trumpf, Philips can say that it has withdrawn from the lighting industry more thoroughly, focusing on medical equipment, home health care, electric toothbrushes, razors and other non-lighting products.——LED Christmas light

VCSEL may bring prosperity to optical chip manufacturers. Another lighting giant, Osram, is also building a strong VCSEL product portfolio. Other big VCSEL-related companies have also been moving this year, such as Lumentum and Oclaro mergers, II-VI and Finisar integration.——LED Christmas light

Typical applications of VCSEL lasers: iris recognition

(Photo source: OESHOW)

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