€227m for ams Osram open back-end plant
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The European Commission has approved a €227m grant to support a €1.4bn back-end processing being built in Austria by ams Osram that will also be open to other European users.
The plant at the ams Osram headquarter in Premstätten will use a range of techniques, combining CMOS devices with Through Silicon Vias (TSV) for vertical connections and flip-chips as well as optical filters for Grade 0 automotive qualified products.
This will be the first facility in Europe with such an integrated process and producing Grade 0 automotive qualified products, with full production scheduled for 2030.
The funding comes under the European Chips Act which partially open to other semiconductor companies to design and produce their own semiconductor chips. This requires the plant to have a broader impact with positive effects on the EU semiconductor value chain and contribute to the development of a first-of-a-kind integrated manufacturing facility in the EU.
This would also implement priority rated orders in the case of a supply shortage in line with the European Chips Act and develop and deploy educational and skills training to increase the pool of qualified and skilled workforce.
“The integrated manufacturing facility in in Premstätten will help reverse the tendency of overreliance on wafers manufactured outside of Europe. The Commission also took note that ams Osram has committed to apply to be recognised as an Integrated Production Facility and as an Open EU Foundry under the EU Chips Act Regulation and will comply with all obligations linked to this status,” it said.
This is the seventh decision by the Commission based on the European Chips Act, following support for STMicroelectronics in the ongoing construction of the 200mm silicon carbide (SiC) wafer plant in Catania, Italy, and the European Semiconductor Manufacturing Company (ESMC) and Infineon Smart power fabs in Dresden, Germany, as well as Silicon Box for the construction of a semiconductor advanced packaging and testing facility in Novara, Italy
However it also includes the approval for the €2.9bn French aid measure to support STMicroelectronics and GlobalFoundries for the expansion in Crolles that is now in doubt.
- ST, GF suspend plans for joint fab say reports
- Europe approves €2bn for 200mm SiC line
- €1.3bn for Italian chiplet plant
“This Austrian project will have wide positive effects for the European semiconductor ecosystem. It will support the development of a strong and resilient digital economy in Europe, ensure a secure supply of semiconductors for the industry and help create high-skilled employment while limiting any potential distortion of competition,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition.
ams Osram saw a drop of 5% in revenue in 2024 and has been cutting €35m of legacy CMOS products as part of a turnaround plan.
“Our turnaround is in full swing. Focusing on the core portfolio in our semiconductor business proves right,” said said Aldo Kamper, CEO of ams OSRAM, which sees 2025 as volatile.
“This semi core grew approx. 7% compared to 2023, driven by a strong rebound in sensors for mobile devices based on new product ramps and a resilient auto business. Savings from our ‘Re-establish the Base’ (RtB) strategic efficiency program are ahead of plan.”
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