OSRAM: focus on three strategic pillars

After the German lighting giant OSRAM since November 2015 announced a new strategic direction, the stock price fell, investors opposition as one falls, another rises. This week, OSRAM put forward a detailed description of its strategic direction. And pointed out that the company with a number of investors holding more closely communicate, confident that it will be able to get their support.

In the three pillar strategy, OSRAM plans to improve the profitability of semiconductor technology products, and plans to invest in the next few years.

In the Lighting (Specialty, SP) business, OSRAM has invested more resources into the automotive LED products and lighting system solutions, but also have plans to invest in new technologies such as laser and OLED.

In the field of lighting and solutions business (Luminaires & Solutions, LS), OSRAM plans to expand in the next few years, smart city and smart building applications product line.

OSRAM hopes in the LED component (Opto Semiconductors OS) is located in Malaysia on the field to provide a 6 inch LED chip factory technology, economies of scale and cost advantages of a cost advantage.

At present, digital, mobile technology and urbanization are shaping the new trend of the lighting industry. With OSRAM's leading position in the lighting industry, the company will continue to benefit from. After the spin off general lighting business, OSRAM will focus on three strategic pillars: special lighting; lamps and solutions business and LED semiconductor element solution.

Special lighting: expanding market leadership

As a global leader in automotive lighting, OSRAM will invest more resources in semiconductor technology and optical engine and optical module system business, to further explore the growth potential. Currently, OSRAM is the only company that provides a laser module and is ready for mass production, and plans to further enhance the development of innovative optical modules. Meanwhile, the future of OLED is expected to be widely used in automotive taillights. In addition, OSRAM will continue to expand other special lighting business, such as entertainment lighting applications.

Lighting and solutions business to catch up with the growing potential market

In the lighting and solutions business, the future OSRAM will launch a number of different services, the introduction of intelligent technology advanced lighting solutions. In response to the trend of sustainable urbanization, connectivity and data collection is a key factor, with greater potential for development. In this context, the lighting and solutions business will expand its complete solution to other areas. The importance of complete lighting solutions also makes electronic equipment and software expertise more important. OSRAM plans to build proprietary technology in the field of sensors, to become a member of the wisdom of building a smart city.

LED semiconductor components: maintain balanced growth

High profit photoelectric semiconductor business over the years has played the LED element in the second position in the market. Especially in the field of special lighting, optoelectronic semiconductor business has been in a leading position. When it comes to the efficiency of the volume transmitter chip, optoelectronic semiconductor industry leader. OSRAM Malaysia opened a factory will mainly solve LED general lighting market.

In this market segment, the compound annual growth rate of 9.5% in 2020, OSRAM will further expand the market position in the next few years.

In addition, optoelectronic semiconductors in the next few years, the private market will continue to grow significantly, including automotive and industrial sectors. In addition to the advantages of economies of scale, the new plant in Malaysia will lead OSRAM to bring the cost advantage of other manufacturers, so that OSRAM has become a cost advantage in the industry.

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