Current LED chip and lamp prices have plummeted because there are too many similar competitors on the market, said Geet van der Meer, Head of Osram's LED Lamps and Systems business unit recently at a Lighting Japan 2016 forum. To cope with the challenging environment, companies are focusing on product quality, design, digitalization and intelligent devices to pave an alternative road map for LED lighting.

Five Chinese LED manufacturers have been competing head-to-head in the bid for Osram’s lighting business, after the German company announced it would be spinning-off its less profitable general lighting business in April 2015. The five listed Chinese companies in the race for Osram’s lighting business include MLS (also known as Forest Lighting), ETI, Tsinghua Tongfang, Felio Acoustics and Foshan Lighting. All the potential Chinese buyers have the needed financing platforms, but for the German lighting company price is just one of the decisive factors, another main concern is the synergetic effect from the resulting partnership. In the article below, LEDinside evaluates the chances of the five companies’ succeeding in the acquisition of Osram’s general lighting business.

Osram, one of the leading lighting companies, has granted Taiwan’s Unity Opto Technology Co. Ltd. a royalty-bearing license to produce white LED packages under Osram core patents covering phosphor conversion technology. This technology is widely used in the LED industry for the generation of white light based on a semiconductor chip emitting blue light that is partially converted into one or more other colors by suitable phosphor materials.

Smart lighting solutions are carving out their place in ever more living rooms. When it comes to smart homes, Osram has already demonstrated its innovative capacity in the past with its smart lamps and luminaires in the Lightify series. Now Osram is carrying on with the first smart LED lamp controlled by the Thread network protocol and is presenting it at the Consumer Electronics Show (CES) in Las Vegas.

Shanghai Feilo Acoustics and The Hongkong Shanghai Banking Corporation (HSBC) recently signed a termination agreement that ended the international bank’s role as the sole financial consultant for the Chinese LED luminaire company’s plan to acquire Osram’s lighting business.

In a recent interview with German magazine Manager Magazin, Siemens CEO Joe Kaeser affirmed he was surprised by Osram’s R&D investment plans, and noted the company had not sold a single share it had in Osram.

Siemens has been indiscreet about its dissatisfaction with Osram’s R&D strategy recently. A report from German media Handelsbatt on Monday pointed out the lighting company’s largest shareholder intends to sell its 17% stake to an Asian buyer, just one week after Siemens announced it was unsupportive of Osram new business strategy.

Osram’s largest shareholder Siemens might be considering selling its 17% stake in the company, reported Reuters.Citing a report from leading German newspaper Handelsblatt, a source in the industry revealed Siemens might sell its stake in Osram to an Asian manufacturer. No further details were offered about the potential Asian candidate.

In response to partly misleading media reports ‒ most recently in the Mittelbayrische Zeitung under the headline "Siemens knew" ‒ regarding the involvement of Siemens in the planned strategic realignment of Osram AG, Siemens comments as follows:

In the evenings, and especially when evenings become longer, many people love the snug, warm glow of a burning candle or open fire. Incandescent and halogen lamps create similarly cozy light by simple dimming, but with modern LED lamps this is technically not quite as simple. To create the popular light effect with 2,000 Kelvin here as well, Osram has integrated state-of-the-art LED technology into its new Glow-Dim models.

The new Oslux SFH 4786S infrared LED (IRED) from Osram Opto Semiconductors enables iris recognition systems to be made less complex and with lower profiles. At 1.6 millimeters (mm) high, this new IRED is around one-third thinner than its predecessor. Its direction of emission is slightly angled so there is no need for the usual mechanical aids to ensure correct geometrical alignment.

In an exclusive interview with LEDinside, MLS General Manager Lawrence Lin discussed in-depth the company’s ongoing talks with German LED company Osram to acquire its lighting business at Taipei Building Show organized by Dollar International Industry earlier today.

The new Quantum Colors conversion technology from Osram Opto Semiconductors will set new standards in LED backlighting for TV displays as it offers much better coverage of the color space, significant cost savings compared with conventional quantum dot sheets, and zero cadmium. For many years leading manufacturers of televisions have been demanding an ever broader color space. The TV standard is once again moving to a larger color triangle with Ultra HD. 

OSRAM was announced as the Official Lighting Partner of the 2016 Eurovision Song Contest.

Oversupply situations in the LED chip sector, and fierce competition in the general lighting sector over the past few years has aggravated the pricing situation in 2015. White LED chip prices for the large part have reflected a consistent downtrend over the past few years. Despite the ominous cloud hanging over the LED chip and general lighting sector, German LED chip manufacturer Osram announced last week it would be injecting in total EUR 2 billion (EUR 2.14 billion) in R&D and EUR 1 billion in LED manufacturing in the next five years.

Viewed from afar, Suzhou International Expo Center is like being enveloped by the bright moonlight, wearing a gorgeous silver-white silk skirt, with OSRAM’s lighting solution. Located in the central area of Suzhou Industrial Park, Suzhou International Expo Center occupies an area of 188,600 square meters where all kinds of mega events, such as national and international exhibitions, conferences and celebrations, are held.

Osram, a global leader of lighting manufacturer based in Germany recently announced an additional investment of EUR 3 billion (US $3.24 billion) by the year 2020, in line of becoming a semiconductor company following the planned disposal of its traditional lamps and light bulbs business.. The additional investments comprised of EUR 1 billion for the construction of a new light emitting diode (LED) chip plant in Kulim, Malaysia. The new plant will be the largest and latest 6-inch LED chip production site worldwide. The balance EUR 2 billion will be invested in research and development (R&D) for the Osram Group globally.

In addition to the Osram application center for aftermarket products in Herbrechtingen, there is now a second one in Asia, which was officially opened in Shanghai on November 9, 2015. This brings Osram closer to business customers in the Asian region. On the one hand, it helps to deal with requests from customers in Asia more quickly, and on the other, technical queries and issues can be resolved together with the customer.

 Investments of around EUR 2 billion (US$) planned in research and development by 2020.  Additional EUR 1 billion intended for the construction of a new LED chip plant by 2020.  “Diamond” initiative promotes growth and sustained enterprise value Until 2020, average annual growth rates of 8% for revenue and 9% for EBITDA expected

Osram managed the challenges of the changing lighting market very well in the fiscal year that ended in September 2015 and laid a strong foundation for future growth. EBITA1 excluding special items rose 26 percent on a year-on-year basis to €567 million, translating into a margin of 10.2 percent. Cost savings, positive currency effects as well as simplified corporate structures have contributed to this earnings increase. The reported EBITA margin reached 5.3 percent despite high transformation costs, while net income declined to €171 million. Revenue, on the other hand, rose eight percent to almost €5.6 billion. On a comparable basis, i.e., adjusted for portfolio and currency effects, revenue remained almost stable with a decline of around one percent. Based on the current corporate structure, the company expects comparable revenue in fiscal 2016 to be slightly below the prior year’s level. The adjusted EBITA margin is likely to be substantially below the level of fiscal 2015, among other things due to expenses attributable to the “Diamond” innovation and growth initiative. In contrast, net income is expected to increase sharply due to the anticipated book gain from the announced sale of the shares in Foshan Electrical & Lighting Co., Ltd. (Felco). Osram confirms that a dividend of €0.90 per share will be proposed for fiscal 2015 to the Annual General Meeting. For fiscal 2016, the company also intends to pay a dividend of at least €0.90 per share.

The word was out last Friday that Osram is in the process of selling its lamp business, which comprises traditional lighting businesses and LED luminaires, with Chinese manufacturers showing the greatest interest in bidding for the German company’s prized luminaire businesses.

German lighting manufacturer Osram has initiated the sales process of its lamps business, which it intends to spin-off operations from the group by next April and legally by July, a Reuters report cited a company spokesman saying recently.

LED filaments instead of tungsten wire. Osram Opto Semiconductors presents the Soleriq L 38, the first filament LED in its product range. The long thin shape of the LEDs provides the basis for filament lamps which, in terms of their appearance and their emission characteristics, are more than a match for their incandescent lamp predecessors. The Soleriq LEDs offer an extremely uniform color appearance and quality of light, creating a pleasant atmosphere. They are therefore ideal for aesthetic lighting applications in the home and in hotels and restaurants.

The newly designed intermediate storey of the Marienplatz subway and metro station in Munich, Germany was inaugurated this Monday. The concept drawn up by the architects Allmann Sattler Wappner and the lighting designer Ingo Maurer gives the subterranean mezzanine a bright, clearly arranged and customer-friendly appearance following a construction period of three and a half years. Up to 200,000 passengers enter this traffic node daily, following modernisation by the Munich municipal authorities (SWM) and the Munich transport company (MVG). An essential element of the design is the orange-red light ceiling installed in the central ticket hall, where more than 1,000 Osram light lines have been installed for illumination.

Connected lighting is an essential part of today’s smart home technology solutions. Osram’s LIGHTIFY system has joined the Works with Nest programme, one of the leading drivers in the smart home business. The Nest Learning Thermostat offers simple and thoughtful solutions for every home.

Last weekend, the official celebrations to mark the 25th anniversary of the reunification of Germany took place in Frankfurt am Main. In honor of the occasion, a lighting installation designed by Sven Sören Beyer and Björn Hermann illuminated 25 bridges across the Main as part of a spectacular light show on October 3. For the technical side of things, they relied on products from Clay Paky, an Osram subsidiary.

OSRAM has supporting the Light Test campaign in Germany for many years. During the Light Test campaign from the 1st. to the 31st. October drivers can have their lights checked free of charge in many registered vehicle workshops or garages throughout the country. OSRAM as the global leader in innovative vehicle lighting, is a supporter of these activities. During the campaign period OSRAM provides special car lamp packages of the most common types.

New LED lamps in a glow filament design as well as a replacement for halogen lamps being phased out from 2016 are now available for the 2015/2016 lighting season. Osram is starting with a range of further LED lamp developments for the new lighting season that traditionally begins in October. At the same time, the lighting manufacturer supports the efforts of its trade partners with a renewed LED competition for consumers.

The Lightify range has been expanded to include an economic replacement for 60 watt incandescent lamps and three new design luminaires The new design luminaires in the Surface Lights series within the Lightify range and the Classic 60W Clear LED lamp now enable a low-cost entry into the world of modern, intelligent light control. Using the Lightify Gateway and the Lightify app control, the warm white light of the lamp and luminaires can be dimmed via smartphone or tablet (iOS, Android), switched on and off either manually or by using a time switching function and also be integrated into individual light scenes.

Osram Opto Semiconductors is unveiling an LED prototype in surface mount technology (SMT) with a brightness of up to 2000 lumen (lm) at ISAL 2015 – the Oslon Black Flat S. Experts achieved this high output by combining five chips from the latest UX:3 generation with an improved SMT package. A single LED is therefore sufficient as the light source for combined low-beam and high-beam systems. The excellent thermal connection with the package allows for passive cooling, which reduces system costs. The Oslon Black Flat S is consequently a viable alternative to HID (High Intensity Discharge) lamps and is scheduled to be added to the Osram automotive portfolio at the end of 2016.