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Bosch Plans €3 bn Investment in Semiconductor Division by 2026

Bosch had already invested €1 billion in a 300-mm wafer-manufacturing facility in Dresden, which began production in June 2021.

Shortage of Semiconductor ChipsThe demand for chips is a major concern for the last few years. Different companies and countries have taken several steps to get it resolved.

Now, Bosch has announced its investment plan of €3 billion in its semiconductor division by 2026.

They will build two development centers and extra clean-room capacity at its existing sites in Dresden and Reutlingen, Germany.

This is not the first time, Bosch had already invested €1 billion in a 300-mm wafer-manufacturing facility in Dresden, which began production in June 2021. Five months later, the German maker announced it would invest more than €400 million in expanding its wafer-manufacturing fabs in Dresden and Reutlingen and in its chip-testing operations in Penang, Malaysia.

Under the European Chips Act, the European Union and the German federal government are providing additional funding to develop a robust ecosystem for the European microelectronics industry. The goal is to double Europe’s share of global semiconductor production from 10% to 20% by 2030. The recently launched IPCEI on Microelectronics and Communications Technology is mainly aimed at promoting research and innovation.

Athanassios Kaliudis, Bosch’s spokesperson for connected mobility, software, and automotive electronics during  a conversation with , said, “The €3 billion investment announced on July 13 is not part of the investments already announced last November. Nor does the €1 billion investment at the opening of the Dresden plant. The newly announced €3 billion are all new investments.”

 €3 billion envelope comprises a €250 million investment in additional clean-room space in Dresden and a €170 million investment in two development centers in Dresden and Reutlingen that will “focus on new semiconductor technologies like gallium nitride.”

“The rest is not yet precisely defined,” said Kaliudis. “The rest” represents $2.58 billion to be invested in new projects by 2026.

Besides the development center, Bosch plans to add in coming year 3,000 square meters of clean-room space to its 300-mm wafer fab in Dresden.

Kaliudis said the group expects to start manufacturing its MEMS sensors on 300-mm wafers in 2026. However, he declined to comment on the expected annual capacity.

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Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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