Osram announces €1 bln expansion in Malaysia

KUALA LUMPUR: Germanbased Osram will be investing an additional €3 billion by 2020, in line with its plan to become a semiconductor company following the planned disposal of its traditional lamps and light bulbs business.

The additional investments comprised €1 billion for the construction of a new light emitting diode (LED) chip plant in Kulim, Kedah, the largest and latest six-inch LED chip production site worldwide, said Malaysian Investment Development Authority (MIDA) in a statement here.

The balance of €2 billion will be invested in research and development (R&D) for the Osram group globally.

Osram is the global leader in the supply of lighting products.

LED is a priority industry in Malaysia as the world moves towards green technology and energy saving trends. Malaysia is now gaining prominence as a production hub for LED manufacturers.

The development and production of LED cluster in the country covers semiconductor devices for LED, wafer fabrication, lighting products and solutions such as applications for vehicle lighting, backlights and displays. Commenting on Osram’s expansion, MIDA Chief Executive Officer Datuk Azman Mahmud said the project would be beneficial to the country in terms of jobs creation as well as further strengthening the value chain of other local players in the LED industry.

Apart from that, the project would complete the LED ecosystem in Malaysia, making the country more conducive for deployment of high-technology projects, he said.

“We are excited for Osram’s growth plans and the positive impact it will have on the country,” said Azman.