14 April 2022
ams OSRAM investing €800m over next 18-24 months on new 8” LED front-end fab
At its Capital Markets Day (CMD) on 5 April, ams OSRAM GmbH of Premstätten, Austria and Munich, Germany provided investors with an update on its strategy, business outlook and targeting optical solutions, showcasing the opportunities for the firm since it has been on an integration path after ams gained operational control of OSRAM in March 2021.
“We have a compelling strategy, anchored by major technologies, that will drive the demand for optical solutions in markets in which we are active and holding leading positions,” believes CEO Alexander Everke. “This is underpinned by the diversity of our revenue growth vectors in our Semiconductors business, across the Automotive, Consumer, Industrial and Medical end markets. The confluence of these factors will create the foundations of sustainable and responsible success,” he adds.
In particular, the CMD focused on the following:
- confirming the firm’s targeted financial model, providing more underpinning regarding the key drivers of the long-term target model of double-digit average annual revenue growth and 20+% adjusted EBIT margin;
- introducing 2024 mid-term targets of €4.9bn+/-€300m revenue and adjusted EBIT margin of 15% or better, on the basis of the re-aligned portfolio; and
- showcasing the firm’s technology position in key growth applications including advanced dynamic automotive lighting, micro-LED display technology, optical solutions for augmented reality/virtual reality (AR/VR), automotive sensing, and horticulture LED lighting.
The firm also presented its future industrial footprint. Along with a range of consolidation steps, ams OSRAM will build a new 8”-wafer LED front-end fabrication plant alongside its existing LED fab in Kulim, Malaysia, adding significant capacity to support expected growth in advanced LED technologies and micro-LEDs. The new facility investment is expected to amount to about €800m over the next 18-24 months.