PNB, EPF & KWAP invest RM2bil in ams-Osram semiconductor ops in Malaysia
30 Oct 2023
Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), and the Retirement Fund Inc (KWAP) are investing RM2 billion in ams-Osram AG’s Malaysian semiconductor operation.
PNB, EPF and KWAP announced today that they had signed a RM2 billion sale and leaseback transaction agreement with Osram Opto Semiconductors Sdn Bhd.
In a joint statement, the companies said the transaction offers a unique opportunity for PNB, EPF, and KWAP to invest in a high quality and high specification industrial real asset in Malaysia which provides competitive returns.
Osram Opto is a wholly-owned subsidiary of Austria-based ams-Osram, a leader in intelligent sensors and emitters.
The sale and leaseback transaction is expected to conclude in December.
The co-investors will each own 33.3 per cent equally. The investment is for a 10-year period with a clear exit strategy.
“In addition, the investment catalyses foreign direct investment (FDI) by enabling our partner to deploy more capital in Malaysia.
“This aligns with one of the goals of the Madani Economy Framework, which aims to establish Malaysia as a leading Asian economy and enhances our global competitiveness, resulting in high impact growth investments for the country.
“Furthermore, it is in line with Malaysia’s New Industrial Master Plan 2030, in its objective of advancing economic complexity,” noted the companies.
They added the injection of capital to the electrical and electronics (E&E) sector enables ams-Osram to establish the world’s first fully automated 8.0-inch LED and micro LED manufacturing facility.
“The facility will foster the development of an ecosystem to support high value-added activities such as semiconductor fabrication. It underscores Malaysia’s vision of becoming a prominent high-tech manufacturing hub that would rejuvenate the ‘Made in Malaysia’ brand,” they said.