Business News | Mar 08, 2011

Capacity Expansion at OSRAM Opto Semiconductors

OSRAM Opto Semiconductors will be stepping up its production output significantly by converting its two chip manufacturing facilities to 6-inch wafers while expanding both plants. A new production building is currently under construction in Penang, Malaysia, while in Regensburg, Germany, the available space is being reallocated. The two facilities will each be converting to the new manufacturing technology, introducing 6-inch wafers to replace the current 4-inch wafers. These measures are expected to almost double the chip production capacity for white LEDs by the end of 2012.

With this move, OSRAM Opto Semiconductors is putting itself on track to cash in on the growth potential of international LED markets and the expansion measures at its Regensburg and Penang production plants will be decisive in securing its international market position. The Penang chip manufacturing plant, which opened nearly two years ago, has been pegged for further expansion and conversion to 6-inch wafers. The total manufacturing area will be raised to around 25,000 sqm in 2012, creating some 400 additional jobs in the process. At the Regensburg plant, the available area is to be reallocated and InGaN (indium gallium nitride) production to be converted step by step from as early as the summer of 2011.

"By expanding our capacities for high-performance InGaN chips, we are consistently consolidating our market position. The LED market harbors great growth potential in many different fields of application and we intend to continue harnessing this," said Aldo Kamper, CEO of OSRAM Opto Semiconductors, "The company is an important link in OSRAM's LED technology value-added chain."

The capacity expansion will primarily affect InGaN chips employing thin-film and UX:3 technology, which are required in the production of white LEDs. These will be manufactured on 6-inch wafers from the outset and not on wafers with a 4-inch diameter, as hitherto.

About OSRAM Opto Semiconductors:
OSRAM is part of the Industry sector of Siemens and one of the two leading lighting manufacturers in the world. Its subsidiary, OSRAM Opto Semiconductors GmbH in Regensburg (Germany), offers its customers solutions based on semiconductor technology for lighting, sensor and visualization applications. OSRAM Opto Semiconductors has production sites in Regensburg (Germany) and Penang (Malaysia). Its headquarters for North America is in Santa Clara (USA), and for Asia in Hong Kong. OSRAM Opto Semiconductors also has sales offices throughout the world. In the 2007 fiscal year (to the end of September) OSRAM Opto Semiconductors employed more than 4000 people and achieved sales totaling 520 million euros.

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