ams OSRAM plans to significantly expand production and chip technologies in Styria by 2030 as part of the European Chips Act

• Planned investment in new generations of innovative microchips totalling EUR 588 Mio. by 2030 to meet growing demand for applications in medical technology, industry and consumer handhelds.  
• Federal Minister of Labour and Economy Martin Kocher welcomes and supports the application for funding as part of the European Chips Act
• The requested funding of up to EUR 200 Mio. is part of important investments by ams OSRAM in Austria in the development and production of future generations of microchips “Made in Europe”
• In the midterm future, approximately 250 new jobs will be generated at the Premstätten site
• Expansion strengthens technological leadership and security of supply in Europe and Austrian semiconductor ecosystem

Premstätten, Austria (13 May 2024) – ams OSRAM is sustainably strengthening its development and production site in Premstätten. Aldo Kamper, CEO of ams-OSRAM AG, together with Federal Minister Martin Kocher and the Governor of Styria, Christoper Drexler, today presented plans to invest a total of EUR 588 Mio. in the development and production site in Premstätten by 2030. Within the framework of the European Chips Act, funding of up to EUR 200 Mio. has been applied for. This means that ams OSRAM's application for funding is already in pre-notification and has been submitted to the EU Commission for approval. The planned new factory at the production site in Styria is intended to further expand the leading role of the Austrian semiconductor industry. A total of 250 new jobs will be created in the next few years.

The global situation in the semiconductor market clearly shows the importance of investing in innovative key technologies for the future. This is why the European Commission has set itself the goal of promoting the mass production of semiconductors in Europe and increasing its global market share to 20 percent of production by 2030. In addition, new next-generation chip technologies are to be made possible. Therefore, the European Chips Act has been launched. The investment by ams OSRAM will help strengthen European sovereignty in semiconductor production and digitization. It will also make an important contribution to the “Green Transition”.  
“With the new factory at our headquarters, we can create more space for innovation, meet the growing needs of our customers and manufacture more products in Europe,” says Aldo Kamper, CEO of ams-OSRAM AG. “At the same time, our investment is a clear commitment to Premstätten as a business location, to Styria as a high-tech location and to Austria as a location for innovation and production. From here we are driving forward digitalization in line with the European Green Deal and supporting Europe’s technological sovereignty.” 

“Austria is one of the leading locations in Europe for microchips, which secures jobs and creates prosperity in the long term. Thanks to its technological expertise and innovative strength, the Austrian semiconductor industry strengthens our international competitiveness. We are therefore taking advantage of the opportunities it offers for our country, our economy and our workforce, and will continue to expand this pioneering role. The investment announced today by ams OSRAM will make a significant contribution to this. The European Chips Act provides the necessary framework for accelerating research and production. The Federal Government is committed to strengthening this strategic area of strength and has already taken clear steps in this direction. Thus, Austria has allocated a budget of around three billion euros until 2031 to further boost the Austrian Semiconductor innovation and production ecosystem,” said Martin Kocher, Federal Minister of Labour and Economy. 

As part of its strategic program ‘Re-establish the Base’, ams OSRAM is focusing on structural growth areas in its core business with intelligent sensors and emitters (LEDs and laser diodes for automotive, medical and industrial applications as well as highly differentiated components for consumer handhelds).

The planned semiconductor manufacturing facility, which will be the first of its kind in the world, will produce the next generation of highly differentiated optoelectronic sensors for medical and automotive applications. There are also plans to manufacture products for industrial and consumer goods applications. It consists of a combination of outstanding technologies (CMOS, Filter¹⁾ and TSV²⁾) functions according to a toolbox concept. Depending on the product, the different capabilities can be individually combined as required for energy-efficient products for imaging and optoelectronics with a reduced form factor, more functions on one component and outstanding electrical performance. The construction of an additional 1,800-square-meter cleanroom at the Premstätten site for CMOS production will also double filter capacity and increase TSV capacity by a factor of four.

Christopher Drexler, Governor of Styria, emphasizes: “The investment by ams Osram is good news for Styria and for securing the production site in Premstätten. This will further strengthen Styria as an industrial and high-tech region and create numerous new jobs. Thanks to our clear focus on research and development and the large number of well-trained specialists, Styria offers companies a good environment for growth and positive development.” 

“Southern Austria is the centre of the domestic microelectronics industry. 80 percent of the value added in this sector is generated in Styria and Carinthia. The current investment by ams OSRAM in Premstätten will create 250 new jobs, further strengthen Styria as a business location and make us even more visible internationally,” said Barbara Eibinger-Miedl, Styrian Minister for Economic Affairs. 

In addition, ams OSRAM plans to make around 20 percent of the newly created production capacity available as an “open foundry”, i.e. as a contract manufacturer for other companies or research institutes. “In line with our strategic program ‘Re-establish the Base’, we want to build on the market-leading core competence of our company and shape the future of the semiconductor market from here,” added Aldo Kamper, CEO of ams OSRAM. It will be the first foundry in Europe to offer a combination of technologies and services that will enable European design houses to develop new solutions for automotive, medical and industrial applications.

¹⁾ Filters select incoming radiation. For example, they use the phenomenon of interference - the overlapping of light wavelengths - to pass or reflect certain spectral ranges of electromagnetic radiation. This enables color recognition beyond that of the human eye,

²⁾ TSVs - Through Silicon Vias - are vertical electrical connections through a chip. They are essential building blocks for advanced packaging technologies for high performance, small footprint devices required in many different market segments such as consumer, automotive, medical, etc. Devices with TSVs are typically 30 to 70 percent smaller than conventional packaging concepts. Such a significant reduction in size is necessary to enable the implementation of sensors in Internet of Things applications.