– Investments of around €2 billion planned in research and development by 2020
– Additional €1 billion intended for the construction of a new LED chip plant by 2020
– “Diamond” initiative promotes growth and sustained enterprise value
– Until 2020, average annual growth rates of 8% for revenue and 9% for EBITDA expected
The shift in the lighting market toward semiconductor-based technologies is creating new growth opportunities, which OSRAM will consistently seize. To this end, the lighting company will invest around €3 billion in new technologies and applications by 2020. Of this amount, approximately €2 billion will be spent on research and development in order to further strengthen OSRAM’s technological leadership and to expand into new markets. Additionally, OSRAM has planned another €1 billion for the construction of a new LED chip plant in Malaysia. This is to unlock additional growth potential, in both the dynamic, technology-driven general lighting markets and niche markets, where OSRAM is already in a good position today. “With a focus on profitability, flexibility, and entrepreneurship, following a phase of strategic realignment, we are now launching the ‘Diamond’ innovation and growth initiative. This means we are switching the focus to sustainable growth, benefiting even stronger from the potential offered by semiconductor-based technologies,” said Olaf Berlien, Chief Executive Officer of OSRAM Licht AG.