Philips will be speeding up the overhaul of traditional light business in favor of LED as more customers switch to energy efficient products, according to a Reuters report.

The company is expected scale up spending in the overhaul of traditional incandescent lightbulb to EUR 170 million (US $229.94 million) in the second half of the year from EUR 100 million. The lighting business restructure might involve downscaling production or even shut down of traditional lightbulb factories.

The recent move has come weeks after the company announced plans of spinning off Philips Lumileds and its automotive lighting business into a stand-alone company.

Philips noted falling prices for LEDs and a drop in sales of traditional light bulbs during 2Q14.

The Dutch group blamed falling prices for LEDs and a drop in sales of traditional light bulbs during the second quarter. (Please click here for the company’s 2Q14 financial results.)

LED bulb price wars are eroding Philips profit leaving the company and Osram seeking out new technologies to develop new markets.

Philips said it is still too early to announce what the overhaul will entail, but the company has sold or closed factories making incandescent bulbs in the past.

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• Philips Merges Lumileds and Automotive Lighting Business to Establish Stand-alone Company