Osram closes share deal

17 Jun 2002

Osram has bought Infineon's share of the joint venture Osram Opto Semiconductors for Euro 565 million.

Lamp producer Osram, Germany, has bought German semiconductor manufacturer Infineon Technologies' 49% share of the joint venture Osram Opto Semiconductors. The deal is valued at Euro 565 million (USD 512 million), and Osram Opto will now become a wholly owned subsidiary of Osram. A company spokesperson says that Osram hopes that the latest move will strengthen its position in the optosemiconductor field.

"Osram is transforming itself from a traditional manufacturer of light bulbs into a high-tech company," said Osram's president Wolf-Dieter Bopst. "With the expansion of our semiconductor light-source business, we are participating in a market that has annual growth rates of 20%."

"This [sale] allows us to concentrate on our communications segments," added Ulrich Schaumacher, chief executive of Infineon Technologies.

Opto Semiconductors was set up in January 1999, to develop light-emitting diodes (LEDs). Based in Germany, the US and Malaysia, the company is building a new LED fabrication plant at Regensburg, Germany which will start production by 2003.