Cost reduction? OSRAM will expand LED chip production line

Germany OSRAM (OSRAM Licht AG) pointed out that the photoelectric semiconductor business director Aldo Kamper, although the general lighting products in the market to lower profits, but the company has found that OSRAM itself through comprehensive effect advantage, to enhance the general lighting products profit strategy, therefore decided to expand the production line and reduce the overall manufacturing cost of LED chip.

According to OSRAM's external strategy, in the 2020 fiscal year, the realization of outdoor lighting and other general lighting applications chip revenue is currently the proportion of two times, that is, to improve the proportion of about 1/3. LED chip production line expansion, in addition to reducing costs, but also allows the semiconductor business interests in the medium term to maintain an average of more than 15%.

Before OSRAM announced to spend 3 billion euros, about $3 billion 300 million in R & D, as well as in Southeast Malaysia base to build a new 6 inch Kulim LED production line, but some investors do not love this decision, at that time, showing considerable price decline.

Aldo Kamper believes that LED components required for lighting and electronic industry of car, compared with the LED chip the use of lighting, the gross margin is still relatively high, but he estimated lighting sales will be significantly improved, when greater shipments, OSRAM LED chip for lighting applications cost will be decreased, for the special the market has been developed and OSRAM lighting in the field of specialization, will have better profitability.

OSRAM recently also put LED element wearable device application, is the amount of blood for measurement in blood vessels to monitor heart condition, which is an integrated optical transmission sensor, photoelectric products for OSRAM, which belongs to the relatively high gross profit. The OSRAM has also made the famous wisdom Bracelet manufacturers Fitbit orders, this kind of high margin products built in smart Bracelet products, the future will have the opportunity to expand more medical, fitness business opportunities.

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