Europe Approves $237M for ams Osram Plant

ams Osram is set to receive €227 million ($237 million) in state aid from the Austrian Ministry of Economy and Labor to support the construction of an advanced manufacturing facility in Premstätten, Austria. The plant, expected to be operational in 2030, bolsters Europe’s semiconductor supply chain, particularly for automotive applications.

The facility will be based on a toolbox approach that combines CMOS technology for transistors with a through silicon via (TSV) technique. This allows for a vertical electrical connection of chips and/or optical filters, and thereby provides specific capabilities to the final chip. The advantage of such a tightly integrated process is the ability to produce Grade 0 automotive qualified products with reliability and high performance. The construction of the additional cleanroom at the Premstätten site, with an area of 1800² sq m for CMOS production, will also double filter capacity and increase TSV capacity by a factor of four.

ams Osram’s Premstätten headquarters. Courtesy of ams Osram.

The plant, expected to be the first facility in Europe with such an integrated process and producing Grade 0 automotive qualified products, will also be partially open to other semiconductor companies. The facility will produce highly differentiated next-generation optoelectronic sensors that are qualified for applications in medical technology and in the automotive industry. In addition, the production of products for industry or for use in consumer goods is planned.

The aid comes as a direct grant to ams Osram to support its investment during the construction period in Premstätten. Under the agreement established with the European Commission, ams OSRAM will implement priority rated orders in the case of a supply shortage in line with the European Chips Act, and will also develop and deploy educational and skills training to increase the pool of qualified and skilled workforce.

In total, ams OSRAM plans to invest €567 million in the project by 2030. The European Commission's approval of the Austrian state aid funding is the seventh such decision. It follows last week's approval of a German measure to support Infineon in establishing semiconductor manufacturing facility in Dresden.