02 Aug 2007
The German company will close its production line in Penang, Malaysia, by the end of 2007, as the firm focuses on developing OLED lighting products.
Osram Opto Semiconductors will be exiting the production of passive matrix displays based on organic LEDs (OLEDs) at the end of the year. The display manufacturing line in Penang will close and its 270 employees transferred to other activities, including Osram's new LED chip production facility also in Penang.
Worldwide demand for the company's Pictiva OLED displays - used predominantly in communication systems, industrial applications and mobile consumer electronics - has lagged far behind the company's expectations, according to a statement from Osram.
The company has therefore decided to withdraw from the display business and concentrate exclusively on the core business of lighting.
"Our attention in the OLED sector will now be focused exclusively on our lighting solutions using organic LEDs, for example in area lighting," said Rüdiger Müller, CEO of Osram Opto Semiconductor. Muller stressed that the company will honor obligations towards its existing customers and employees during the transition.
Osram expects to launch its first market-ready OLED lighting products within the next few years. A team of 50 people in the company's Regensburg, Germany, research center are currently working on the development of products and production lines for OLED lighting. "The experience we have gained in the display sector will speed up the development process considerably," said Müller.