€588 million investment in a new factory: this well-known company is doubling down on these sectors!

By 2030,the plan is to invest €588 million in next-generation innovative microchips to meet growing demand in medical technology, industrial and consumer electronics markets;
Austrian Federal Minister of Labour and Economy Martin Kocher welcomes and supports ams OSRAM’s funding application under the European Chips Act;
ams OSRAM’s request for up to €200 million in funding is a key component of Austria’s strategic investments, aimed at promoting R&D and production of next-generation microchips to achieve “Made in Europe”;
By the mid-implementation phase of the upgrade plan, the Premstätten production site will add approximately 250 jobs;
This upgrade plan strengthens the technological leadership of the European and Austrian semiconductor Industry ecosystem and enhances supply chain security.

ams OSRAM (SIX Swiss Exchange: AMS), a global leading provider of optical Solution, recently announced that it is continuously increasing its investment in the R&D and production site in Premstätten.Aldo Kamper, CEO and Chairman of the Board of Management of ams OSRAM Group, together with Austrian Federal Minister Martin Kocher and Styria Governor Christopher Drexler, announced plans to invest up to EUR 588 million in the R&D and production site in Premstätten by 2030.

Furthermore, under the , ams OSRAM has applied for funding support of up to EUR 200 million. This application is currently in the preliminary notification stage and has been submitted to the European Commission for approval. This investment aims to further strengthen Austria's leading position in the semiconductor Industry and is expected to create 250 jobs in the coming years.

The current state of the global semiconductor market highlights the importance of future investments in innovative key technologies. In light of this, the European Commission has set an ambitious goal to promote large-scale semiconductor production in Europe and plans to increase its global market share to 20% by 2030, while achieving breakthroughs in next-generation chip technology. To this end, the European Chips Act was introduced. ams OSRAM's investment will enhance Europe's autonomy in semiconductor production and digitalization and make a significant contribution to the "green transition".

Aldo Kamper, CEO and Chairman of the Board of Management of ams OSRAM Group stated:

The completion of the new factory at our headquarters will provide us with more space for innovation, meet the growing demands of our customers, and enable increased production in Europe. At the same time, our investment clearly demonstrates our strong commitment to Premstätten as a business location, Styria as a high-tech Industry region, and Austria as a hub for innovation and production. We will build on this foundation to drive digitalization in line with the European Green Deal and are committed to safeguarding Europe’s technological sovereignty.

Martin Kocher, Austrian Federal Minister of Labour and Economy stated:

Austria is one of the leading countries in Europe in the microchip sector, ensuring long-term job stability and economic prosperity. With excellent technical expertise and strong innovation capabilities, the competitiveness of Austria’s semiconductor Industry continues to rise in international competition. Therefore, we are fully leveraging the significant opportunities this Industry brings to our country, economy, and workforce to consolidate this leading position.

The investment plan announced by ams OSRAM will have a significant impact on this. The European Chips Act provides a solid framework to accelerate R&D and production, and the Austrian federal government is committed to strengthening strategic advantages in this area and has taken clear action. Accordingly, the Austrian government has allocated a budget of approximately EUR 3 billion until 2031, aimed at further promoting the development of Austria’s semiconductor innovation and production ecosystem.

As part of the "Base Reconstruction" plan, ams OSRAM is focusing on key areas of structural growth within its core business—smart sensors and emitters (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 facility will become the world's first factory to produce next-generation highly differentiated optoelectronic sensors, meeting application demands in the medical and automotive sectors, and covering product lines for industrial and consumer applications. The factory integrates cutting-edge technologies (CMOS, optical filters ^[1], and TSV ^[2]), following a toolbox design philosophy that allows flexible combination of functions to meet various needs, addressing the demand for energy-saving products in imaging and optoelectronic devices. These products will feature smaller sizes, more functions integrated onto single components, and superior electrical performance. Additionally, the Premstätten facility will expand its cleanroom space by 1,800 square meters, dedicated to CMOS production, which is expected to double filter production capacity and quadruple TSV production capacity.

Styria Governor Christopher Drexler emphasized:

The investment by ams OSRAM is great news for Styria, ensuring the stable operation of the Premstätten production site. This move will further consolidate Styria's leading position in the industrial and high-tech sectors and create numerous jobs locally. We always focus on investment in R&D and have many well-trained professionals, which provide a good growth environment and positive development momentum for companies in Styria.

Styria Minister of Economic Affairs Barbara Eibinger-Miedl said:

Southern Austria is the center of the domestic microelectronics Industry, with Styria and Carinthia contributing 80% of the economic added value of this sector. ams OSRAM's current investment in Premstätten will create 250 new jobs, further strengthening Styria's business position and enhancing our influence on the international stage.

In addition, ams OSRAM plans to allocate approximately 20% of the new Production capacity as an "open foundry," providing wafer fabrication services to other companies or research institutions.

Aldo Kamper, CEO and Chairman of the Board of Directors of ams OSRAM Group, stated:

Under the guidance of the 'Base Reconstruction' plan, we are committed to consolidating the company's core market competitiveness with this wafer fab as the cornerstone, leading the future of the semiconductor market.

This will be the first semiconductor manufacturing plant in Europe to offer a combination of technology and services, helping European design companies develop new Solution for automotive, medical, and industrial applications.

Note:

1 Optical filters can select incident radiation. For example, they use wavelength overlap of light (i.e., interference phenomena) to transmit or reflect electromagnetic radiation of specific spectra, thereby enabling us to identify spectra that are difficult for the human eye to perceive.

2 TSV (Through Silicon Vias) is a vertical conduction technology implemented within chips. It plays a crucial role in advanced packaging technologies for high-performance, small-size devices, which are widely used in consumer electronics, automotive, medical and other market sectors. Compared with traditional packaging concepts, devices using TSV technology can typically reduce their volume by 30% to 70%. This significant size reduction is key to deploying sensors in IoT applications.

Source: OSRAM