January 26, 2021

Samsung group is considering to shut down its solar energy business

ITVoice News: According to the latest reports, Samsung group is considering to shut down its solar energy business, which was supposed as one among the five major strategies to ensure the Korean conglomerate’s future. The South Korean giant is planning to step up its mobile solution business, including Internet of Things (IoT).

solarPower_ITVoice According to the reports, the  company has observed that  the profits of the solar energy  business have been  continuously falling, despite  of the fact that the solar  energy business is considered  as to be very lucrative  market.

 Last year, the market research company, Frost & Sullivan had estimated the global solar power market at $59.84 billion which was further expected to go double by around $137.02 billion in 2020. In the second quarter, Samsung SDI reported about its electronics material division, which involves its solar energy business went through 15 per cent drop in revenue within few consecutive years to $342.5 million. The biggest reson behind falling profits has been observed as to be the competition from the Chinese companies. Samsung SDI was to develop solar cells and modules.

Samsung Fine Chemicals in May reduced its stake from from 53.7 percent to 16.1 percent in SMP, a joint-venture polysilicon plant with SunEdison. Samsung Fine was established to develop polysilicon.

The solar business was one of the five pillars of new growth ideas, which other than this involved, automotive batteries, LED, biotechnology and advanced medical equipment. Samsung had planned to invest a total of 23.3 trillion won in all the five sectors by 2020.