On May 21, 2014, Osram’s LED packaging plant in Wuxi, China, was officially put into production. This move will further strengthen its leading position in the LED market. The factory has invested hundreds of millions of euros and covers an area of about 100,000 square meters. By 2017, the number of employees will reach 2,100.
"The operation of the new factory not only expands the production capacity of our LED back-end factory to alleviate the full load pressure, but also enhances our influence in the world's largest single lighting market." Wolfgang Dehen, Chairman and CEO of OSRAM, said, "Asia, especially China, is the main growth driver of the global lighting market, and therefore has also become the main driving force for the development of the LED industry."
China accounts for approximately 20% of the global lighting market share and has maintained rapid growth in the past few years, especially in the development of LED lighting technology. The overall size of China's general lighting market in 2013 was approximately 15 billion euros, and is expected to grow to 21 billion euros in 2018. By then, the market share of related semiconductor products represented by LED is expected to climb to more than 60%, while in 2013, this figure was only 29%.
With the Wuxi LED packaging plant put into production, Osram will be able to better meet the growing demand of the Chinese market. The factory officially signed a contract to settle in Wuxi New District in May 2012, and officially broke ground in August of the same year. Pan Junqing, deputy mayor of Wuxi City, Jiangsu Province, said: "Osram's new LED packaging plant will play an important role in building the Wuxi LED industry value chain. We believe that the operation of the plant will help Wuxi develop into one of the first-class optoelectronic semiconductor production bases in China and even Asia."
The factory is built and operated by Osram Opto Semiconductors Co., Ltd., a subsidiary of Osram. Its main business is LED chip housing packaging. This is the company's second back-end factory, the other being located in Penang, Malaysia. In addition, Osram Opto Semiconductors also has two LED chip front-end manufacturing plants in Regensburg, Germany and Penang, Malaysia. The Wuxi factory can produce billions of LED optoelectronic semiconductor components every year.
"Our business has always been global, and considering the size and growth prospects of the Chinese market, our investment in Wuxi comes at the right time." said Aldo Kamper, CEO of Osram Opto Semiconductors Co., Ltd., "This factory will help us further leverage our professional advantages and deepen our understanding of customer needs, thereby providing them with more value-added services."
Osram has been committed to developing its optoelectronic semiconductor business for more than 40 years, developing and manufacturing various LED optoelectronic semiconductor components. Its products are widely used in industry, consumer electronics, automotive fields and general lighting. The product range also includes infrared diodes and laser products based on semiconductor technology. Osram Opto Semiconductors is headquartered in Regensburg, Germany, and has more than 7,000 employees worldwide.
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