Osram Licht AG announced to start the operation of its new LED chip factory in the Kulim Hi-Tech Park, Malaysia on October 23. The company claimed the new plant will be the world’s largest and most advanced 6-inch LED chip plant after the final stage of the construction scheduled to be finished in 2020.

(Image: Osram)

The German-based LED manufacturer invested EUR 1 billion (USD 1.18 billion) in the Kulim plant, explaining the site has several advantages from a geographical perspective as it is connected with a airport and close to another Osram plant in Penang. In addition, the high quality infrastructure and employees in the Kulim Hi-Tech Park will also benefit Osram’s production of advanced LED chips.

“Kulim is a milestone within the Osram strategy and for this reason far more than just a fab,” the company made in a statement.

(Image: Osram)

The Kulim factory covers an area of around 48 acres and will create over 1,500 jobs for the local labour force. Osram’s production volumes will see a drastic ramp-up, enabling product prices to become more competitive against rivals in Asia such as Nichia and Epistar.

It will also be the company’s first vertical manufacturing site. The plant, as Digitimes reported, will be producing high-end LED chips for automotive and smart lighting, as well as infrared applications for sensors.