Europe-based ams Osram, a leader in lighting and sensing innovation for 120 years, has initiated a new chapter in its evolution by focusing on digital photonics. China will play an important role in supporting this strategic shift, said the company.

According to Conrad Rodriguez, executive vice-president of global sales for ams Osram, the digital photonics strategy is the company's response to growth opportunities in both emitter and sensor markets. The integration of ams Osram's advanced lighting and sensor technology with digital processing solutions will enable a wide range of intelligent applications, such as dynamic lighting solutions in automotive headlamps, smartphone display and camera management using spectral and Time-of-Flight distance sensing, micro projection displays for augmented reality glasses, enhanced data transmission in data centers, advanced environmental sensing and navigation operation capabilities in robotics and drones, etc.

"Our advanced illumination, emitting and sensing portfolios, which can be highly digitized, sensed and processed are making more precise and smarter optical solutions, e.g., we're using light not only to illuminate but also transforming illumination into a means of sensing, communicating and interacting with today's digital world," said Rodriguez.

So far, ams Osram has implemented a series of measures to streamline its business layout and position itself as a pure-play leader in digital photonics. For instance, in February, the company announced plans to divest its non-optical analog and mixed-signal automotive, industrial and medical sensor businesses. By May, it announced the sale of its CMOS Image Sensor business to further refine its focus as a digital photonics solution provider.

"We are reshaping our company by divesting businesses that do not align with this strategy, such as non-optical sensors, to refine our portfolio and enter this highly differentiated space. We are cementing the position as the leader in digital photonics." said Rodriguez.

Important role

China, where ams Osram has been operating for several decades, has long been a strategic contributor to the group's performance. As the company transitions to digital photonics, China is likely to play an even more decisive role, according to Rodriguez.

"China is a central pillar of the digital photonics story," he said, highlighting that the country's rapidly evolving sectors, such as automotive, consumer electronics, industrial, and medical, offer significant market opportunities for ams Osram to expand its presence.

Over the past few months, ams Osram has achieved remarkable success in promoting its product portfolio under the digital photonics concept in China.

Partnerships with businesses across sectors such as automotive and consumer electronics have been well established. For instance, the EVIYOS portfolio, a highly pixelated digital forward headlighting solution, has been adopted by Chinese automotive manufacturer Nio in models like the ES8, ES9 and ET9. Additionally, its AR-HUD solution has been integrated into multiple Leapmotor models, including the new C11. The latest HDR flicker detection sensor is featured in the Honor Magic8 flagship smartphone.

Rodriguez said that the company aims to further strengthen collaboration in China and expand in both traditional and emerging fields, such as electric vehicles, smartphone and wearable technologies, industrial applications, artificial intelligence infrastructure, augmented reality and data centers, etc.

"China is a highly important region for us. To win globally, we have to win in China too. We are well positioned in both our sensing and lighting portfolios. We continue to expand our presence here and invest in the region," said Rodriguez.

Strengthening commitment

Under its "in China, for China" strategy, ams Osram has been dedicated to building a locally based and globally supported industry chain in China to better understand and respond to rapidly changing market demands. A value chain covering development, purchasing, manufacturing and management has been established in the country, according to Kevin Shi, vice-president of the Greater China & Rest of Asia Region at ams Osram.

As ams Osram moves toward the next generation of business, it aims to also place greater importance on China's expertise in innovation and execution, rather than solely valuing its manufacturing capacity over the years, Rodriguez said.

"Companies generally are looking to China as a leader in innovation and technology. The speed of execution has advanced to an amazing level, particularly in the automotive industry," said Rodriguez. "In China, we stay ahead by continually innovating and embracing the local mentality. By moving quickly and developing products specifically for China with our Chinese R&D teams, we maintain our relevance and stay ahead of the competition."

Looking ahead, ams Osram intends to continue to expand its operations and investments in China. It will further enhance its innovation capacities in the country and aims to bring Chinese solutions to the global market.

"We aim to continue to grow as China continues to grow and support the needs of customers here," said Rodriguez.

China will not only serve as a cornerstone of supply chain stability, resilience, and innovation, but it will also become a learning market for the company to explore new approaches, according to Rodriguez.

"For us, seeing all the applications for our technology, as well as the speed and innovation of design, is quite amazing," said Rodriguez. "China went from being known as a manufacturing powerhouse to now a true leader in innovation. This is really impressive for the world, the electronics industry, and all the buyers to see. And so, for us, it's extremely important to support the Chinese market."