227m for ams Osram open back-end plant

The European Commission has given the green light to a €227m grant to support the construction of a €1.4bn back-end processing facility in Austria by ams Osram. This facility, located at the ams Osram headquarters in Premstätten, will utilize advanced techniques such as CMOS devices with Through Silicon Vias (TSV) for vertical connections, flip-chips, and optical filters to produce Grade 0 automotive qualified products.

Setting a milestone in Europe, this integrated process will mark the first of its kind on the continent, with full-scale production expected to commence by 2030. The funding falls under the European Chips Act, which aims to encourage semiconductor companies to design and manufacture their own chips. The plant's broader impact is anticipated to positively influence the EU semiconductor value chain and pave the way for an innovative integrated manufacturing facility in the EU.

Moreover, the facility will be equipped to implement priority rated orders in the event of supply shortages, in alignment with the European Chips Act. It will also focus on developing educational and skills training programs to enhance the pool of qualified and skilled workers in the semiconductor industry.

“The establishment of the integrated manufacturing facility in Premstätten will help reduce Europe's dependence on wafers produced outside the continent. ams Osram's commitment to seek recognition as an Integrated Production Facility and an Open EU Foundry under the EU Chips Act Regulation has been duly noted by the Commission,” stated a representative.

This initiative represents the seventh decision made by the Commission under the European Chips Act. Previous support includes backing for projects such as STMicroelectronics' silicon carbide wafer plant in Italy and the construction of semiconductor facilities in Germany and Italy. However, uncertainties loom over the approval of a €2.9bn French aid package intended to bolster STMicroelectronics and GlobalFoundries' expansion in Crolles.

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“The Austrian project is poised to have far-reaching positive impacts on the European semiconductor ecosystem. It will foster the growth of a robust and resilient digital economy in Europe, ensure a stable semiconductor supply for industries, and facilitate the creation of high-skilled jobs while mitigating potential competition distortions,” remarked Teresa Ribera, Executive Vice-President for Clean, Just, and Competitive Transition.

ams Osram experienced a 5% decline in revenue in 2024 and has been in the process of phasing out €35m worth of legacy CMOS products as part of a strategic turnaround plan. “Our turnaround efforts are well underway. Concentrating on our core semiconductor portfolio has proven to be the right approach,” stated Aldo Kamper, CEO of ams OSRAM, who anticipates a volatile 2025.

“Our semiconductor core witnessed a growth of approximately 7% compared to 2023, driven by a strong resurgence in mobile device sensors due to new product launches and a resilient automotive business. The savings from our ‘Re-establish the Base’ (RtB) strategic efficiency program are exceeding expectations,” Kamper added.