Osram, a global leader of lighting manufacturer based in Germany recently announced an additional investment of EUR 3 billion (US $3.24 billion) by the year 2020, in line of becoming a semiconductor company following the planned disposal of its traditional lamps and light bulbs business. The additional investments comprised of EUR 1 billion for the construction of a new light emitting diode (LED) chip plant in Kulim, Malaysia. The new plant will be the largest and latest 6-inch LED chip production site worldwide. The balance EUR 2 billion will be invested in research and development (R&D) for the Osram Group globally.

LED is a priority industry in Malaysia as the world moves towards green technology and energy saving trends. Malaysia is now gaining prominence as a production hub for LED manufacturers. The development and production of LED cluster in the country covers semiconductor devices for LED, wafer fabrication, lighting products and solutions (LED applications – vehicle lighting, backlights and displays).

Commenting the announcement made by the company on 10 November 2015, Dato’ Azman Mahmud, Chief Executive Officer of MIDA said, “We certainly welcome such expansion by Osram, one of the eight pioneer electronic companies that commenced operations in the Bayan Lepas Free Trade Zone during the early 1970s. This project will be beneficial to the country in terms of jobs creation as well as further strengthening the value chain of other local players in the LED industry. Apart from that, the project will complete the LED ecosystem in Malaysia, making the country more conducive for deployment of high-technology projects.”

“The company could have chosen anywhere in the world for its expansion plans. The fact that Osram continues to expand and diversify over the years, reflects the continued confidence of investors in Malaysia. It is a testament to our on-going commitment to become better partners with the private sector in attracting new investment and job opportunities for Malaysians. It also shows that the country offers the right mix of strategic value propositions as a profitable place for companies to grow their business. MIDA stands ready to assist Osram by providing our full support to ensure the successful implementation of this project, as well as to facilitate the company’s existing operations in Malaysia. We are excited for Osram’s growth plans and the positive impact it will bring to the country,” he further added.