Osram’s Purchase of Novità Technologies to Affect LED Industry

Osram has reached an important milestone this month with the acquisition of Novita Technologies, a U.S.-based automotive LED module manufacturer that was established in 2007 as a spin-off with annual revenue of around US $44.08 million. Positioned in the OEM and aftermarket in the automotive lighting industry, the company is also applying for a flexible LED-arrays patent.

According to a LEDinside analyst, this acquisition could integrate Osram’s automotive lighting supply chain, making it more complete and enable it to put in place two strategies to better meet the demand of clients. He added that the German lighting manufacturer is targeting to meet clients’ automotive lighting customization demands, while offering standard automotive lighting solutions to clients.

Previously, Osram supplied LED package or light source components to automotive lighting clients that was later on soldered onto a circuit board by module experts. Thanks to the addition of Novita Technologies, the company will be able to supply LED module products, which would benefit clients lacking in soldering capacity.

The LEDinside analyst revealed that Osram is still focused on the OEM market, adding that LED modules are now a trend in the automotive lighting sector. “Many new automotive LED modules are asymmetrical, making it more difficult to manufacture. In general, LED modules remain uncommon in the AM sector.”