Chip, this is how the German Bosch will increase production
German technology conglomerate Bosch will invest three billion euros in chip manufacturing by 2026
The German Bosch is betting on semiconductors: it will invest 3 billion euros in the production of chips.
Bosch announced Wednesday that it will make the investment by 2026 as part of the European Union and German government's efforts to double Europe's share of global chip manufacturing to 20% by the end of the decade.
It is the auto parts supplier's latest move to expand chip production after spending € 1 billion on a new wafer plant in Dresden, Germany, which opened in June last year. The additional semiconductor supply will be used not only in cars and trucks, but also for a number of other applications, from home appliances to wearable technology, Bosch said.
Earlier this week, Italian-French STM and US GlobalFoundries announced plans for a new $ 5.7 billion chip factory in France.
All the details.
THE 3 BILLION EURO INVESTMENT
German technology conglomerate Bosch will invest three billion euros in chip manufacturing by 2026. In 2022 alone, the company will increase its semiconductor investment by 50%. “In the interest of our customers, we are preparing for a steadily growing demand for chips,” explained CEO Stefan Hartung.
“Europe can and must leverage its strengths in the semiconductor industry,” added Stefan Hartung. “The aim must be to produce chips for the specific needs of the European industry”.
EXPANSION OF GERMAN FACTORIES
To this end, Bosch is expanding its factories in Reutlingen and Dresden. In the capital of Saxony, the conglomerate has opened "the most modern chip factory" in Europe.
Last year, the German group opened a € 1 billion chip factory in Dresden, a record investment as it sought to claim its claim in the growing market for chips to equip electric and self-driving cars amidst a global shortage.
A total of 170 million euros will go to the new development centers in Reutlingen and Dresden, with 250 million euros to be spent on the expansion of the existing Dresden site.
How the remaining funds will be spent has yet to be decided, Hartung said.
THE BOSCH STRATEGY
In addition, Bosch intends to demonstrate that in the future it will be able to design chips for computer control units in cars. In this way, the conglomerate “ventures into a new field”, having so far developed microsensors, integrated circuits for controls and power semiconductors. With this in mind, Bosch will invest an additional 400 million euros in the main chip plant in Reutlingen by 2025 in order to mainly expand the production of silicon carbide power semiconductors. These chips require virtually no cooling, consume less power and allow faster charging in electric cars, AgenziaNova highlights.
THE FRAMEWORK OF THE EUROPEAN IPCEI
The investment, for which Bosch will seek EU funding under the IPCEI (Major Projects of Common European Interest) framework, is expected to increase European chip manufacturing capacity in a global market still dominated by US and Asian players.
The goal is to double the EU's share in world semiconductor production from 10 to 20% by the end of the decade.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/chip-ecco-come-la-tedesca-bosch-aumentera-la-produzione/ on Thu, 14 Jul 2022 06:16:47 +0000.