Bosch will invest $296 million in semiconductor production to fight chip shortages.
In order to keep on top of the ongoing chip scarcity, Bosch is boosting its previously declared investment in semiconductor production. Bosch is investing an extra $296 million in new manufacturing facilities, on top of the $473 million it committed to spend in 2022 last year.
The majority of last year's funds went to Bosch's new 300-millimeter wafer fabrication facility in Dresden, with around $57 million set aside for Reutlingen, near Stuttgart, where the company began production in December. Between now and 2025, almost all of the new funding will go to Reutlingen, where it will be used to build new production space and a total of 44,000 square meters of modern cleanroom space, in response to rising demand for semiconductors and micro-electro-mechanical systems (MEMS) sensors in both the automotive and consumer electronics markets.
In a statement, Markus Heyn, member of Bosch's board of management and head of the Mobility Solutions business unit, said, "Bosch is already a top semiconductor maker for automotive applications." "And we plan to consolidate this position."
The wafer fabs in Reutlingen will produce 6- and 8-inch wafers. Although 6-inch wafers aren't as common as 8-inch or 12-inch wafers today, the method can lower the cost of semiconductor products like LEDs and sensors. Since 2019, there has been a shortage of 8-inch wafers, which are mostly utilized in sensors, microcontrollers, and wireless communication chips. According to Bosch, the development of Reutlingen will meet the increased demand for MEMs in the automotive and consumer electronics industries, as well as silicon-carbide power semiconductors.
More 12-inch silicon chips will be produced at Bosch's Dresden factory, which is utilized to make high-performance devices such as CPUs, logic ICs, and memory.