Bosch announced on Wednesday that it will invest 3 billion euros ($3.01 billion) in chip manufacture by 2026, including the opening of two new development centres and the expansion of its wafer factory in Dresden.
The investment, for which Bosch will seek European Union funding under the Important Projects of Common European Interests (IPCEI) framework, will increase Europe’s chip production capacity on a worldwide market still dominated by U.S. and Asian manufacturers.
“Every chip that we make here in Dresden is one chip less that is lacking. That helps,” management board member Harald Kroeger told Reuters in an interview.
Addressing an online opening ceremony, Chancellor Angela Merkel said semiconductor shortages were hampering Germany’s economic recovery, and that it was important to strengthen resilience against external supply disruptions.
“We aren’t in pole position – we have to catch up,” Merkel said. “We must be ambitious. Our competitors around the world aren’t sleeping.”
The Bosch plant will manufacture specialized power-management chips and Application Specific Integrated Circuits (ASICs) tailored to perform a specific function, such as activating an automobile’s automated braking system.
It would not address shortages of products such as microcontrollers, which have led automakers to halt production and are anticipated to continue into next year, according to industry officials and analysts.
