AMS-Osram Seeks €200 Million Funding for Austrian Opto Fab

The European Chips Act has paved the way for AMS-Osram to secure a substantial funding application of €588 million (approximately US$630 million) to bolster chip research and development as well as manufacturing endeavors in Austria throughout the remainder of the decade. This significant investment marks a strategic move by the company to strengthen its presence in the European microchip market.

Following a setback in its expansion plans in Malaysia due to the cancellation of a microLED display project by Apple, AMS-Osram is now focusing on the development and production of 'Made in Europe' microchips with the help of the €200 million funding application. This initiative falls under the company's 'Re-establish the Base' strategic program, with a particular emphasis on catering to various market sectors such as medical, industrial, and consumer wearable electronics.

The upcoming factory is poised to become a hub for the production of optoelectronic sensors designed for medical and automotive applications. Additionally, there are ambitious plans in place to manufacture products targeting industrial and consumer goods sectors. AMS-Osram anticipates that this investment will lead to the creation of approximately 250 jobs at its Premstaetten headquarters site in the near future.

While specifics regarding wafer diffusion at the new factory remain undisclosed, AMS-Osram is gearing up to construct a 1,800-square-meter cleanroom at the Premstätten site to facilitate CMOS production. This expansion is expected to double the company's filter capacity and increase its through-silicon-via capacity by a factor of four, signaling a significant leap forward in its manufacturing capabilities.

CEO Aldo Kamper expressed enthusiasm about the prospects brought about by the new factory, stating, "With the new factory at our headquarters, we can create more space for innovation, meet the growing needs of our customers, and manufacture more products in Europe." He emphasized the company's commitment to fostering innovation and production in Austria, aligning with the principles of the European Green Deal and bolstering Europe's technological sovereignty.