Business News | Oct 10, 2008

Osram Drops OLED Displays for OLED Based Lighting Solutions

Osram GmbH will cease production of OLED-based displays and close the related fab in Penang, Malaysia. In the future, the company will focus on lighting solutions, also based on OLED technology.

The Siemens subsidiary will exit the production of based passive matrix LED displays by the OLED-end of the year. Instead, it will concentrate its OLED activities on developing market-ready lighting solutions. "After all, we are a lighting company", explained an Osram spokesperson. "Our market expectations for OLED displays have not materialized."
Under the 'Pictiva' brand name, Osram manufactures passive matrix displays since 2003 and sells them into a broad range of applications including communication systems, industrial and mobile communications devices. However, demand has lagged far behind Osram's expectations. The experience gathered in the display sector will not be lost. "This experience will speed up considerably the development of lighting products and production methods", explained Osram CEO Ruediger Mueller.
The company will transfer 270 employees to other activities within Osram Semiconductors including the company's new LED chip fab in Penang. Also the US-based marketing and design activities are affected; the company said it is about to search new jobs for the U.S. team.
Two weeks ago, Osram has broken ground for a new LED fab, in Penang which will create about 800 jobs. In addition, the company announced to increase its backend capacity in that region by 50 percent. For the new facilities, Osram has invested a double-digit million euros sum.
The new fab is scheduled to ramp up production in the first quarter of 2009. According to the spokesperson, the Penang production will not go at the expense of the company's production in Regensburg, Germany. In contrast, the company plans to increase its production here as well.

About OSRAM:
OSRAM is one of the two leading lighting manufacturers in the world. Sales in the year ending September 30, 2006 totalled 4.6 billion euros, 88 percent of which came from outside Germany. OSRAM is a high-tech company in the lighting sector. Around 40 percent of sales comes from innovative products. This global player employs around 40,000 people worldwide, supplies customers in some 150 countries and has 49 production facilities in 18 countries. .
About OSRAM Opto Semiconductors:
OSRAM Opto Semiconductors GmbH, Regensburg, is a subsidiary of OSRAM. It offers its customers solutions based on semiconductor technology for the lighting, sensor and visualization sectors. The company has sites in Regensburg, San José (USA) and Penang (Malaysia) and more than 3600 employees.
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