Osram's most modern LED chip factory operates on schedule to expand LED assembly capabilities

At present, the global LED chip market is facing a supply shortage, prompting major manufacturers to accelerate their production expansion. OSRAM has taken significant steps in this direction, with its newly launched LED chip factory in Kulim, Malaysia now officially operational. This marks a key milestone in the company's strategy to boost global LED production and meet rising demand. OSRAM recently announced that its new facility in Kulim, Malaysia, has begun operations on schedule. Olaf Berlien, CEO of OSRAM Group, highlighted the importance of this development during the factory’s opening ceremony. He noted that the Kulim plant has met all deadlines and is already contributing to the company’s rapid growth. “Our LED business has seen a 19% growth rate in recent years, and we are excited to expand further under this momentum,” he said. The investment in Kulim reflects OSRAM’s ongoing transformation from a traditional lighting company to a high-tech enterprise. A decade ago, 80% of its business was in traditional lighting; today, two-thirds of its revenue comes from optoelectronic semiconductor-based products. The Kulim factory was first announced in November 2015 and was expected to be completed by the end of 2017 as part of OSRAM’s “Diamond” innovation and growth plan. Just over a year and a half after breaking ground, the modular and scalable facility is now fully operational. So far, OSRAM has invested 370 million euros in the first phase of the project. A second phase is planned with an additional 1 billion euros in investments, aimed at expanding LED assembly capabilities across the OSRAM Global Factory Alliance. Aldo Kamper, CEO of OSRAM Opto Semiconductors, emphasized the plant’s exceptional productivity. “The Kulim factory can produce enough LED street lights for cities like New York, Rio, Hong Kong, and Berlin in just one week,” he said. “If we were to upgrade all street lighting worldwide to LEDs, it would take only 5.5 years of continuous production.” LED technology offers up to 80% energy savings compared to traditional lighting, along with improved color stability and faster dimming capabilities, allowing for more efficient lighting when streets are empty. The blue LED chips produced at the Kulim plant are used to create white light through a phosphor conversion layer. These chips have a wide range of applications, from general lighting such as streetlights to specialized uses like building facades, commercial interiors, billboards, and horticultural lighting. By 2018, the global LED general lighting market is projected to reach 6 billion euros, with around 6% of that dedicated to street lighting. The overall optoelectronics market, including general lighting, is expected to grow to 17.5 billion euros by the same year. Once the second phase of the Kulim plant is completed, OSRAM plans to manufacture LED chips for high-end applications such as automotive lighting and video projection. Located on a green site, the factory allows for flexible design and incorporates the latest technology. Compared to 4-inch wafer systems, the 6-inch production line increases output by 125% per wafer. In addition to the Kulim expansion, OSRAM is investing globally to enhance its LED production network. This includes expanding its Regensburg plant in Germany, which currently employs 2,500 people and plans to hire an additional 1,000. The facility produces advanced LED chips and laser diodes for high-quality automotive headlights, as well as infrared diodes used in mobile phone face recognition and smart car systems. OSRAM is also expanding its Schwabming plant in Germany, where it will produce LED raw materials in clean rooms. In Exeter, USA, another facility focuses on LED components, while in Wuxi, China, the company is enhancing its back-end assembly capabilities, including LED housings and optical components. Additionally, the Penang factory near Kulim also produces LED chips, reinforcing OSRAM’s global manufacturing footprint.

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