Along with unveiling its second-quarter earnings, ams OSRAM announced it will eliminate its passive optical components portfolio, among others, as part of a strategic realignment. The company plans to cut what it called its “noncore semiconductor businesses” as it refocuses its semiconductor portfolio on differentiated, intelligent sensor, and emitter components. It said it will continue to pursue opportunities in consumer markets, such as microLEDs. Other updates include plans to increase commitments to the automotive, industrial, and medical markets; restriction of management board membership to only the CEO and CFO (Aldo Kamper and Rainer Irle, respectively), effective Jan. 1, 2024; and the formation of two business units — down from three — in the retooled semiconductor segment. From this “Re-establish the Base” program unveiled by the company, it said it plans to achieve yearly savings of €150 million ($164.5 million) by the end of 2025. The one-time costs of the program are estimated at €50 million. The company further expects to grow revenues at a CAGR of 6% to 10% through 2026 from the reduced base, which will comprise the new semiconductor core portfolio within the semiconductor business segment as well as the lamps and systems business segment. For its second quarter, ams OSRAM’s semiconductor segment generated roughly €600 million (71%) in revenues. The lamps and systems segment generated €251 million, representing 29% of revenues. The noncore and lower-performing portfolio that the company will eliminate generates total revenues of around €300 million to €400 million, ams OSRAM said. The company will restructure its business operations by eliminating its passive optical components portfolio. The company said it expects continued contributions from its semiconductor and its lamps and systems segments. The company added to its horticulture lighting portfolio with multiple offerings this spring. Courtesy of ams OSRAM. Earlier this year, ams OSRAM finalized its sale of the former Digital Systems business in Europe and Asia to LED driver supplier Inventronics. It also completed the sale of its Clay Paky entertainment lighting business.