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  • Osram Will Invest €3B in LED Chip Plant, R&D Projects
Nov 2015
MUNICH, Nov. 13, 2015 — Osram Licht AG plans to invest €3 billion (about $3.22 billion) in LED and laser lighting technologies and applications by 2020.

“Following a phase of strategic realignment, we are now launching the ‘Diamond’ innovation and growth initiative,” said Olaf Berlien, CEO of Osram. “This means we are switching the focus to sustainable growth, benefitting even stronger from the potential offered by semiconductor-based technologies.”

Osram will first invest around €370 million (about $397 million) in its Opto Semiconductors segment for a new LED chip plant in Kulim, Malaysia. Further expansion measures are already planned for a total investment of around €1 billion there by 2020. The new plant will represent the largest 6-in. LED chip production site worldwide.

R&D investments totaling approximately €2 billion (about $2.15 billion) are also planned by 2020. The company intends to promote the development of smart city applications, wireless lighting control, as well as laser and organic LED technology. The increased research expenditure will account for approximately 9 percent of revenue by fiscal 2016.

Osram manufactures lighting technology such as IR and laser lighting, as well as lighting for buildings and cities. The company had around 33,000 employees worldwide at the end of fiscal 2015 and generated about €5.6 billion (about $6.01 billion) in revenue that fiscal year.

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