Osram has signed a contract with the Wuxi New District Administrative
Commit-tee to build a new assembly plant in the Chinese province of
Jiangsu. LED chips will be packaged in housings at the new backend
facility starting in late 2013; with the Regensburg and Penang
(frontend) plants exclusively continuing to make the actual LED chips.
"The new assembly plant will improve our access to the world's largest
single market in the lighting industry," said Aldo Kamper, CEO of the
Osram Opto Semiconductors business unit. "As one of the world’s
most renowned LED lighting corporations, Osram's new plant in Wuxi will
definitely enhance the development of the LED industry in both Wuxi
Municipality and Jiangsu Province," said Lixin Huang, Member of the
Standing Committee of Jiangsu Provincial CPC Committee and Secretary of
Wuxi Municipal CPC Committee in China.
In the face of sharply rising demand for LED-based products, Osram has
opted to set up a further plant in Wuxi, China, to augment the capacity
of its chip plants in Regensburg, Germany and Penang, Malaysia. With
this move, the company is strengthening its access to the lighting
industry’s largest single market worldwide. The new plant is
scheduled to be up and running by the end of 2013. It will be able to
accommodate up to 1,600 employees when fully operational.
The new backend facility at Wuxi near Shanghai will install LED chips
manufactured in the frontend plants at Regensburg and Penang in their
housings. The new assembly plant in Wuxi will also augment the Penang
plant by manufacturing general, automotive and industrial lighting
products for key segments of the Chinese market. The plant’s
added back-end LED capacity, will enable the company to capitalize on
China's fast-growing market and support the two plants in Germany and
Malaysia. "We have attained a leading position in the semiconductor
sector over the course of about 40 years. The facility in China marks
another step forward in extending this lead," said Aldo Kamper.
Market researchers at IMS Research have predicted strong growth for
opto semiconductors such as LED components and laser diodes with
average growth rates of around five percent worldwide in the coming
years. The fastest growth is expected to come in China during the same
period, with an average growth rate of ten percent. This growth
potential extends beyond components.According to a market survey
conducted by McKinsey, the rapidly growing Asian region today already
accounts for around 35 percent of today’s global general lighting
market. This share is expected to increase to 45 percent by 2020.
Forecasts predict the Chinese market alone, worth over €8 billion
today, to more than double by 2020. In fiscal 2011, Osram generated
about one fifth of the Group’s revenue in the Asia-Pacific
region, where it employs over 16,000 people. This workforce is larger
than that of any other region worldwide, and roughly half of it is
employed in China. Osram has marketed products in the region for about
80 years, covering the entire value chain from front to back.
More information at http://www.osram-os.com/