Osram Emphasizes Its Focus on Semiconductor Development

Osram has been addressing its position as a high-tech company. At the Osram Opto Semiconductors Market and Technology Day in Munich, Olaf Berlien, CEO of Osram Licht AG, noted again that, “Osram is very well positioned strategically and financially for the technologies and trends of the future. We are becoming the leading photonics champion. Our semiconductor segment OS forms the technological backbone of our strategic development."

The company intends to become a champion of photonics based on its solid ground of LED-based products. In addition to smart lighting technologies, Osram noted that it will focus on the market fields of visualization, sensing and treatment, in which the biological effects of light on humans and plants will be the main focus.

(Image: Osram)

Moreover, Osram has also been increasing its portfolio of the Osram Opto Semiconductors business unit for innovative applications including autonomous vehicles, horticulture lighting and building control. The company expects these fields to offer great growth opportunities over the industry cycle in the medium to long term, despite its growth rates of the segment droping below the level of the previous years due to currency developments and uncertainties in the automotive industry.

The driving forces of the segment include photonics solutions, LED horticulture lights, miniaturization of LEDs and innovative 3D sensor solutions. According to Osram, it is expected that the revenue growth of Osram Opto Semiconductor will be around 10 percent with an adjusted EBITDA margin between 23 and 29 percent from 2020 onwards.

"In the long term, our prospects remain intact, even though we expect Opto Semiconductor to experience some slowdown in the near term due to market influences. In the short term the visibility on market developments is limited," said CEO Olaf Berlien. For the next fiscal year 2018/19, its planned revenue growth is expected to be between 5 and 10 percent with an adjusted EBITDA margin between 22 and 26 percent.

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