06/10/2006 - Osram Opto Semiconductors, one of the world’s largest light-emitting diodes (LED) producers, is expanding its back-end packaging capacity at its Bayan Lepas plant.
Osram Opto Semiconductors (M) Sdn Bhd managing director Werner Gelner said the group was allocating about 13% of its 500mil euros revenue from last year for the expansion exercise. “The exercise, which is being carried out, is to cater to the growing needs of the automotive industries in the Asia-Pacific region, particularly in China and Malaysia. “The expansion will also create job opportunities for another 100 engineers,” he told StarBiz, adding that there were now 200 engineers at its plant. Gelner said the Asia-Pacific, which currently contributed 16% to Osram’s revenue, was the fastest-growing market for LEDs. “Europe and the US generate 37% and 44% of our revenue respectively,” he said. Gelner said the Penang plant generated about five billion units of LEDs last year. “This year, because of the expansion exercise, the output will be increased by at least 10%. “The Bayan Lepas plant is currently involved in packaging the next generation of LEDs, which are smaller, consume less power, and can generate high-quality light in various colours,” he said.  Gelner said although the raw material prices for making LEDs, such as copper, silver and plastic, had increased, the company could not pass the cost to its customers as the market was very competitive. “We have to offset the higher cost of raw materials with higher output and greater efficiency in the production process,” he said. Established in 1972, the Penang facility is the largest and best equipped Osram manufacturing facility in the world. The plant is involved in manufacturing surface-mounted LEDs, high-power laser diodes, organic light-emitting diodes and LEDs for intelligent displays. Osram celebrated its 100th anniversary earlier this year.

Author: DAVID TAN PENANG