Ams OSRAM: Complete production capacity and chip technology upgrade in Steermark, Austria by 2030, in response to the European Chip Act

Source: AMS Osram Author: AMS Osram

    Ams Osram plans to invest €588 million in the next generation of innovative microchips by 2030 to meet the growing needs of the medical technology, industrial and consumer electronics markets.

    Austrian Federal Minister of Labour and Economy Martin Kocher welcomed and supported AMS OSRAM‘s request for funding under the European Chip Act.

    Ams OSram‘s application for an investment of up to 200 million euros is an important part of Austria‘s strategic investment, which aims to promote the development and production of a new generation of microchips and achieve "Made in Europe".

    By the middle of the upgrade plan, Premst? Approximately 250 new jobs will be created at the tten production site;

    The upgrade plan strengthens the technological leadership of the European and Austrian semiconductor ecosystem and improves supply chain security.

    Shanghai, China, May 28, 2024 - AMS OSram (Swiss Stock Exchange: AMS), the world‘s leading provider of optical solutions, today announced that AMS OSram is increasing its investment in Premst? Investment in tten R&D and production sites. Aldo Kamper, Chief Executive Officer and Chairman of the Board of Directors of AMS OSram, together with Martin Kocher, Federal Minister of Austria, and Christopher Drexler, Governor of the State of Steermark, announced plans to provide the Premst? The investment in the tten R&D and production site amounts to €588 million. At the same time, AMS Osram has applied for up to €200 million in financial support under the European Chip Act, which is currently at 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 over the next few years.

    The current state of the global semiconductor market highlights the importance of future investments in innovative key technologies. In view of this, the European Commission has proposed an ambitious goal to promote large-scale semiconductor production in Europe, and plans to increase the global market share to 20% by 2030, while achieving a breakthrough in new generation chip technology. For this reason, the European Chip Act was born. Ams OSram‘s investment will enhance Europe‘s autonomy in semiconductor production and digitization and make an important contribution to the "green transition."

    Aldo Kamper, Group CEO and Chairman of the Board of Directors of AMS OSram, said: "The opening of the new plant 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 also clearly expressed in Premst? The strong support of tten as a business centre, Steiermark as a high-tech industrial district and Austria as a base for innovation and production. We are here to drive digitalisation in line with the European Green Deal and are committed to upholding European technological sovereignty."

    Martin Kocher, Austria‘s Federal Minister of Labour and Economy, said: "Austria is one of the leading countries in the field of microchips in Europe and has long guaranteed employment stability and economic prosperity. With excellent technical expertise and strong innovation capabilities, the Austrian semiconductor industry continues to increase its competitiveness in international competition. Therefore, we are capitalizing on the tremendous opportunities this industry represents for our country, economy and workforce to consolidate this leading position. The investment plans announced today by AMS OSram will have a significant impact on this. The European Chip Act provides a solid framework to accelerate research and development and production, and the Austrian Federal Government is committed to strengthening its strategic advantage in this area and has taken clear actions. Therefore, the Austrian government has allocated a budget of approximately €3 billion planned for 2031, with the aim of further promoting the development of semiconductor innovation and production ecology in Austria."

    As part of its "base rebuild" initiative, AMS Osram is focusing on a 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, the semiconductor manufacturing facility will be the first in the world to produce the next generation of highly differentiated optoelectronic sensors to meet the needs of medical and automotive applications, and cover the product line of industrial and consumer applications. The factory incorporates cutting-edge technology (CMOS, optical filters [1] and TSV[2]) capabilities, following the toolbox design philosophy, so that products can flexibly combine different functions according to a variety of needs, to meet the needs of imaging and optoelectronics energy-saving products, they will be smaller, more functions integrated on a single component, and have superior electrical performance. In addition, Premst? The tten facility will expand to an 1,800 square meter clean room dedicated to CMOS production, which is expected to double filter capacity and quadruple TSV capacity.

    Christopher Drexler, Governor of the State of Steymark, stressed: "The investment of AMS Osram is a great news for the state of Steymark, ensuring that Premst? Stable operation of the tten production site. This initiative will further consolidate the leading position of Steiermark in the industrial and high-tech sectors and create a large number of local jobs. Our constant focus on research and development and the availability of well-trained professionals provide a good growth environment and a positive development situation for businesses in the Stadmark region."

    Barbara Eibinger-Miedl, Minister of Economy of the State of Steiermark, said: "Southern Austria is the centre of the domestic microelectronics industry, with Steiermark and Kernton contributing 80% of the economic added value of the industry. Ams Osram in Premst? "The current investment in tten will create 250 new jobs, further strengthen Steiermark‘s business position and increase our presence on the international stage."

    In addition, AMS Osram plans to use about 20% of the new capacity as "open fabs" to provide foundry services to other companies or research institutions. Aldo Kamper, CEO and Chairman of the Board of Directors of AMS OSram, said: "Under the guidance of the ‘Base Rebuild‘ program, we are committed to strengthening the company‘s core competitiveness in the market and leading the future of the semiconductor market with this fab as the cornerstone." It will be the first semiconductor manufacturing facility in Europe to offer a combination of technology and services to enable European design companies to develop new solutions for automotive, medical and industrial applications.

    [1] Optical filters can screen incoming radiation. For example, they use the overlap of wavelengths of light (known as interference phenomena) to transmit or reflect specific spectra of electromagnetic radiation, allowing us to identify spectra that are difficult to detect with the naked eye.

    [2] TSV (Through Silicon Vias) is a vertically conductive technology implemented within a chip. It plays a critical role in advanced packaging technologies for high-performance, small-size devices that are used in a wide range of market segments, including consumer electronics, automotive, and medical. Compared to traditional packaging concepts, devices using TSV technology are typically able to reduce the volume by 30 to 70 percent. This significant size reduction is key to enabling sensor deployment in iot applications.

    AMS OSram Group (Swiss Stock Exchange: AMS) is a global leader in smart sensors and transmitters. We bring intelligence to light, inject passion into innovation, and enrich people‘s lives.

    With a history of more than 110 years, our imagination for the future of technology, combined with deep engineering expertise and strong global industrial capacity, has long been deeply engaged in sensing and optical technology to drive innovation. In the automotive, industrial, medical and consumer sectors, we are committed to providing our customers with competitive solutions, improving the quality of life and promoting green environment in terms of health, safety and convenience.

    With approximately 20,000 employees worldwide, we are focused on innovations in sensing, light sources, and visualization that make journeys safer, medical diagnoses more accurate, and communication easier. We continue to develop breakthrough applied innovations and have currently granted and applied for more than 15,000 patents.

    The Group is headquartered in Premstaetten/ Graz, Austria, and the joint headquarters is located in Munich, Germany. In 2023, the Group‘s total revenue exceeded 3.6 billion euros. ams-OSRAM AG is listed on the Swiss Stock Exchange (ISIN:AT0000A18XM4).