ams OSRAM: Complete production capacity and chip technology upgrade in Styria, Austria by 2030, responding to the European Chip Act

ams OSRAM: Complete production capacity and chip technology upgrade in Styria, Austria by 2030, responding to the European Chip Act

• By 2030, ams Osram plans to invest €588 million in the next generation of innovative microchips to meet the growing demand in the medical technology, industrial and consumer electronics markets;

• Austrian Federal Minister of Labor and Economics Martin Kocher welcomed and supported ams Osram’s application for funding under the European Chip Act;

• The investment of up to €200 million requested by ams-osram is an important part of the Austrian strategic investment, which aims to promote the development and production of a new generation of microchips and realize "Made in Europe";

• By the middle of the upgrade plan, around 250 new jobs will be created at the Premstätten site;

• The upgrade plan will strengthen the technological leadership of the European and Austrian semiconductor industry ecosystem and improve supply chain security.

Shanghai, China, May 28, 2024 – amsram, a leading global supplier of optical solutions, today announced that it is increasing its investment in the Premstätten R&D and production site. Aldo Kamper, CEO and Chairman of the Board of Directors of amsram, together with Austrian Federal Minister Martin Kocher and Styrian State Governor Christopher Drexler, announced plans to invest up to 588 million euros in the Premstätten R&D and production site by 2030. At the same time, amsram has applied for funding of up to 200 million euros in accordance with the European Chip Act, which is currently in the pre-notification stage and has been submitted to the European Commission for approval. The investment aims to further strengthen Austria's leading position in the semiconductor industry and is expected to create 250 jobs in the next few years.

The current situation of the global semiconductor market highlights the importance of investing in innovative key technologies in the future. In view of this, the European Commission has proposed an ambitious goal to promote large-scale production of European semiconductors and plans to increase the global market share to 20% by 2030 while achieving breakthroughs in the next generation of chip technology. To this end, the European Chip Act came into being. The investment by ams and OSRAM will enhance Europe's independent capabilities in semiconductor production and digitalization, and make an important contribution to the "green transformation".

Aldo Kamper, CEO and Chairman of the Board of Management of ams OSRAM , said: “The new factory at our headquarters will give us more room to innovate, meet the growing needs of our customers and produce more products in Europe. At the same time, our investment is a clear statement of our strong support for Premstätten as a business center, Styria as a high-tech region and Austria as an innovation and production location. We will be based here to promote digitalization in line with the European Green Deal and to safeguard Europe’s technological sovereignty.”

Martin Kocher, Austrian Federal Minister of Labour and Economics , said: “Austria is one of the leading countries in Europe in the field of microchips, with long-term job security and economic prosperity. With outstanding technological expertise and strong innovation capacity, the Austrian semiconductor industry is increasingly competitive in international competition. We are therefore making the most of the huge opportunities this industry offers for our country, economy and workforce to consolidate this leading position. The investment plans announced today by ams and OSRAM will have a significant impact on this. The European Chip Act provides a solid framework for accelerating development and production. The Austrian Federal Government is committed to strengthening its strategic advantages in this area and has taken clear actions. Therefore, the Austrian government has allocated a budget of around EUR 3 billion until 2031 to further promote the development of the Austrian semiconductor innovation and production ecosystem.”

As part of its “base reconstruction” plan, ams Osram is focusing on the key area of ​​structural growth in its core business - smart sensors and transmitters (including LEDs and laser diodes for automotive, medical and industrial applications, as well as highly differentiated components for consumer handheld devices).

According to the construction plan, this semiconductor manufacturing plant will become the world's first plant to produce the next generation of highly differentiated optoelectronic sensors to meet the application needs of the medical and automotive fields, and cover product lines for industrial and consumer applications. The factory integrates cutting-edge technology (CMOS, optical filters [1] and TSV [2]) functions and follows the toolbox design concept, so that products can flexibly combine different functions according to various needs to meet the energy-saving product needs of imaging and optoelectronic devices. They will have smaller sizes, more functions integrated on a single component, and excellent electrical performance. In addition, the Premstätten plant will expand its clean room by 1,800 square meters, dedicated to CMOS production, which is expected to double the filter production capacity and increase the TSV production capacity fourfold.

Christopher Drexler, Prime Minister of Styria , stressed: “The investment by ams-osram is great news for Styria and will ensure the stable operation of the Premstätten production site. This move will further consolidate Styria’s leading position in industry and high technology and create a large number of jobs in the region. Our focus on research and development and our large number of well-trained professionals provide a good environment for growth and a positive development trend for companies in Styria.”

Barbara Eibinger-Miedl, Styrian Minister of Economics, said: “Southern Austria is the heart of the domestic microelectronics industry, with Styria and Carinthia contributing 80 percent of the economic added value of the industry. The current investment by ams Osram in Premstätten will create 250 new jobs, further strengthening Styria’s business position and increasing our presence on the international stage.”

In addition, ams Osram plans to use about 20% of the new production capacity as an "open fab" to provide foundry services to other companies or research institutions. Aldo Kamper, CEO and Chairman of the Board of Directors of ams Osram Group, said: "Under the guidance of the 'base reconstruction' plan, we use this fab as the cornerstone to consolidate the company's core market competitiveness and lead the future of the semiconductor market." This will be the first semiconductor manufacturing plant in Europe to provide a combination of technology and services, helping European design companies develop new solutions for automotive, medical and industrial applications.

Note:

[1] Optical filters are able to filter incoming radiation. For example, they use the phenomenon of wavelength overlap (interference) to transmit or reflect specific spectra of electromagnetic radiation, thus allowing us to detect spectra that are difficult for the naked eye to detect.

[2] TSV (Through Silicon Vias) is a vertical conductive via technology implemented within a chip. It plays a vital role in advanced packaging technology for high-performance, small-size devices, which are widely used in multiple market sectors such as consumer electronics, automotive, and medical. Compared with traditional packaging concepts, devices using TSV technology are typically 30% to 70% smaller in size. This significant size reduction is key to enabling the deployment of sensors in IoT applications.