ams-Osram Sells Sensor Business to German Company Infineon for €570 Million
The semiconductor company ams-Osram is continuing its cost-cutting measures and divesting itself of a significant division. The buyer is German chip giant Infineon, which is primarily strengthening its location in Graz with this acquisition.
The Austrian-German chip and sensor manufacturer ams-Osram is selling part of its sensor business. / Picture: © Wikipedia / Raimond Spekking / CC BY-SA 4.0
Ams-Osram has sold its non-optical automotive, industrial, and medical sensor business for around €570 million to reduce debt and strengthen its balance sheet.
Personnel transfer and focus on Graz
The acquisition involves not only patents and products but also highly qualified employees. Infineon will take on a total of around 230 specialists from research, development, and management. The Graz location will particularly benefit from this deal, as around 70 of the new employees will join Infineon in the Styrian capital in the future.
Sabine Herlitschka, CEO of Infineon Austria, emphasized the strategic importance of the acquisition: “The expertise of our new colleagues will help us to offer an even wider range of sensor products.” Infineon also expects the transaction to have a positive impact on earnings per share immediately after completion. The package also includes a multi-year supply agreement, which will keep the two companies closely linked in the future.
Politicians call for job guarantees
Despite the economic logic behind the sale, politicians are expressing concern about the Premstätten site, as reported by ORF. Infrastructure Minister Peter Hanke (SPÖ) reacted immediately and demanded clear commitments from the companies. “I have been assured that everything will be done to preserve the Premstätten site and the majority of jobs,” said Hanke. However, he critically emphasized that he expects these promises “not to prove empty words.”
The restructuring course of ams-Osram
The sale is part of the “Re-establish the Base” restructuring program, with which ams-Osram is attempting to return to profitability after the costly takeover of Osram. In the future, the company will focus more on optical solutions and semiconductors for the automotive and industrial sectors.