Bosch to Invest €3 Bn in its Semiconductor Biz by 2026

To tap the growing demand for semiconductors, German technology group Bosch is planning to invest another 3 billion euros in its semiconductor business.

In June last year, the company invested 1 billion euros in its chip manufacturing plant based on 300-millimeter wafers in Dresden.

Unveiling his company’s plans, Dr. Stefan Hartung, chairman of the Bosch board of management, said “Microelectronics is the future and is vital to the success of all areas of Bosch business. With it, we hold a master key to tomorrow’s mobility, the internet of things…”

From this new investment, the company is planning to spend more than 170 million euros on the construction of two new development centers in Reutlingen and Dresden.

Besides, it will also spend 250 million euros over the coming year on the creation of an extra 3,000 square meters of clean-room space at its wafer fab in Dresden.

Hartung further said “we’re gearing up for continued growth in demand for semiconductors ... For us, these miniature components mean big business.”

The company is also working to further modify its own microelectromechanical systems (MEMS) specifically for the consumer goods industry.

Hartung said that “In order to cement our leading market position in MEMS technology, we also plan to manufacture our MEMS sensors on 300-millimeter wafers… Production is scheduled to start in 2026. Our new wafer fab gives us the opportunity to scale production – an advantage we intend to exploit to the full.”

Since the end of 2021, Bosch has been mass-producing silicon carbide (SiC) chips, used in power electronics required for electric and hybrid vehicles, at its Reutlingen plant.

On exploring possibilities of manufacturing other types of chips, Hartung said “we’re also looking into the development of chips based on gallium nitride for electromobility applications.”

By 2025, the company is planning to further expand its semiconductor center in Reutlingen with an investment of around 400 million euros in the expansion of manufacturing capacity and the conversion of existing factory space into new clean-room space.

In addition, it is also building a new test center for semiconductors, located in Penang, Malaysia, which is expected to be completed by 2023 and will be used to test finished semiconductor chips and sensors.