Technology companies Osram and Continental complete negotiations on their 50-50 joint venture, which is expected to begin operations in second-half 2018.

The Osram Continental JV aims to combine Continental’s and Osram’s respective expertise in lighting, light control and electronics, the companies say in a joint news release. The product portfolio will feature semiconductor-based lighting modules such as LED modules for front and rear headlights, laser modules and light control units.

The JV will be based in the Munich, Germany, area but will operate globally to ensure rapid development cycles with customers in their local areas. Osram Continental’s U.S. operations will be based in Hendersonville, TN.

“By joining forces, we will be in an even better position to drive innovations by working closely with the automotive industry, seamlessly integrating lighting, sensor technology and electronics in a single application,” says Hans-Joachim Schwabe, CEO of Osram’s Specialty Lighting division. “This will allow us to advance new intelligent light functions, such as the combination of lighting and sensor technology in a module or light-based communication between the driver, other road users and the vehicle’s surroundings.”

Adds Andreas Wolf, head of Continental’s Body & Security business unit, “The joint venture puts us in a unique position to drive technological change in the automotive lighting market and to develop intelligent lighting solutions by combining our expertise in software and electronics with Osram’s automotive lighting expertise.”