The producer of one in four of the world's lights, which sold its semiconductor business in 2006 after it was undercut by Asian rivals, has invested more than 4 billion euros ($5.47 billion) to ride the clean-tech wave and defend its world-leading position.

But this time, Philips is better prepared for competition.

The company is betting on a shift in the lighting market, away from inefficient incandescent light bulbs and toward light-emitting diodes or LEDs -- perhaps best known for their use in the flashing indicators found on most consumer devices.

"In terms of value around 2015, LED will be bigger than conventional light sources," said Philips executive Niels Haverkorn. In the fourth quarter of 2009, LED-based products made up more than 10 percent of Philips' lighting sales for the first time.