Austrian-German company AMS-Osram AG has cancelled its investment in Malaysia after recently completing its micro-LED plant in Kulim Hi-tech Park, Kedah.
Around 500 workers will be affected worldwide by this decision, many of whom are based in Penang.
According to Digital News Asia, a company executive who wished to remain anonymous said there is a possibility that the company will redeploy the affected workers to its other businesses in the country.
“The business outlook for the sensors and LED market is still growing and we have business lines that are doing well and growing in other areas,” the executive was quoted as saying.
Company chief executive officer Aldo Kamper reportedly revealed that the decision is due to the cancellation of a key customer, believed to be Apple.
The company is pivoting its focus on its internal micro-LED needs, which will be met by its production in Germany.
The company is also seeking a buyer to acquire its Kulim plant’s lease, which is held by Permodalan Nasional Bhd, Employee Provident Fund and Retirement Fund Incorporated.
The lease came under the three bodies when AMS-Osram executed its financial restructuring through €400 million (RM2.03 billion) sale and leaseback of the micro-LED site, with the commitment that the company could buy it back after 10 years or earlier.
According to the report further, a person familiar with the matter said the three funds will not be financially affected as AMS-Osram will continue to honour its obligations if it cannot find a party to take over its lease.
AMS-Osram originally began in Malaysia in 1972 as Siemens. The company is a global optical solutions specialist, particularly in automobiles. - Mkini
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