Munich, Germany, November 12, 2015 — Initially, as part of a €2 billion investment in research and development by 2020 and an additional €1 billion intended for the construction of a new LED chip plant by 2020, Osram will invest around €370 million in its Opto Semiconductors (OS) segment for a new LED chip plant in Kulim, Malaysia. Since further expansion measures are already being planned, the company expects to invest a total of around €1 billion there by 2020. The new plant will represent the largest and latest 6-inch LED chip production site worldwide. The additional production capacity and its technological leadership will enable Osram to significantly increase its market share in the fast growing general lighting markets. This market segment is the largest in the area of opto semiconductors, with a current volume of around €5.7 billion. Given average annual growth rates of 7.5 percent, it offers the company the greatest potential until 2020. Through economies of scale and synergies, Osram can also reduce its cost position in other market activities such as automotive lighting as well as applications for mobile devices, in which Osram already has a strong presence.
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