ams OSRAM Streamlines Portfolio to Focus on Digital Photonics

Automotive, industrial, and medical electronics markets are undergoing rapid specialization, with increasing separation between optical and non-optical sensing technologies. Against this backdrop, ams OSRAM has announced the sale of its non-optical analog and mixed-signal sensor business to Infineon for EUR 570 million in cash, a move aimed at accelerating deleveraging and reinforcing its strategic positioning in Digital Photonics.

The transaction, expected to close in the second quarter of 2026, covers automotive, industrial, and medical sensor activities that are not based on optical technologies. The divested business generated approximately EUR 220 million in annual revenue and around EUR 60 million in adjusted EBITDA in 2025. The sale includes entities holding roughly EUR 130 million in assets that serve as guarantees for the Group’s convertible bonds and senior notes. Proceeds related to these assets will be used for proportional buybacks or redemptions of the corresponding instruments.

Balance sheet impact and deleveraging
The transaction represents a key step in ams OSRAM’s broader deleveraging plan. Combined with other announced asset sales, total proceeds are expected to reach around EUR 670 million. On a pro-forma basis, this reduces the Group’s leverage ratio from 3.3 to approximately 2.5, including OSRAM put options. The strengthened balance sheet is intended to increase financial flexibility while supporting continued investment in core semiconductor technologies.

Strategic focus on Digital Photonics
Following the divestment, ams OSRAM is concentrating its portfolio on Digital Photonics, defined as the digitalization of light emission and sensing through pixelated emitters, optical sensors, and integrated processing capabilities. This positioning targets mid-term growth opportunities in areas such as intelligent illumination, advanced sensing, and optical systems with embedded intelligence.

The Group retains its broad portfolio of optical semiconductor platforms, including emitters, optical sensors, sensor modules, and associated driver and power management ICs. Its traditional automotive lamp business, including aftermarket activities, remains part of the Group and continues to serve as a stable cash-flow contributor to fund semiconductor growth.

Updated financial targets
In parallel with the strategic repositioning, ams OSRAM has confirmed updated over-the-cycle financial targets for 2030. For its semiconductor business, the company is targeting mid- to high-single-digit revenue growth and an adjusted EBITDA margin of at least 25 percent. At Group level, objectives include free cash flow exceeding EUR 200 million and a leverage ratio below 2.

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