Osram invests €1 billion to build LED chip plant in Kulim

PETALING JAYA: Germany-based lighting manufacturer Osram is investing €1 billion (RM4.68 billion) for the construction of a new light emitting diode (LED) chip plant in Kulim, Kedah.
Osram, which made the announcement on Tuesday, said the new plant will be the largest and latest 6-inch LED chip production site worldwide.
The €1 billion investment is part of Osram’s €3 billion additional investment by the year 2020, which is in line with its plans to become a semiconductor company following the planned disposal of its traditional lamps and light bulbs business.
The balance €2 billion will be invested in research and development for the Osram Group globally.
“We certainly welcome such expansion by Osram, one of the eight pioneer electronic companies that commenced operations in the Bayan Lepas Free Trade Zone during the early 1970s. This project will be beneficial to the country in terms of jobs creation as well as further strengthening the value chain of other local players in the LED industry.
“Apart from that, the project will complete the LED ecosystem in Malaysia, making the country more conducive for deployment of high-technology projects,” Malaysian Investment Development Authority (Mida) CEO Datuk Azman Mahmud said in a statement yesterday.
He said Osram could have chosen anywhere in the world for its expansion plans and the fact that it continues to expand and diversify over the years reflects the company’s continued confidence of investors in Malaysia.
“It is a testament to our on-going commitment to become better partners with the private sector in attracting new investment and job opportunities for Malaysians. It also shows that the country offers the right mix of strategic value propositions as a profitable place for companies to grow their business.
“Mida stands ready to assist Osram by providing our full support to ensure the successful implementation of this project, as well as to facilitate the company’s existing operations in Malaysia. We are excited for Osram’s growth plans and the positive impact it will bring to the country,” he added.
According to Mida, LED is a priority industry in Malaysia and the country is gaining prominence as a production hub for LED manufacturers.
The development and production of LED cluster in the country covers semiconductor devices for LED, wafer fabrication, lighting products and solutions (LED applications – vehicle lighting, backlights and displays).