In the face of the global chip shortage, Bosch is increasing its capital expenditure. Bosch plans to invest more than 400 million euros in expanding its wafer fabs in Dresden and Reutlingen, Germany, and its semiconductor operations in Penang, Malaysia in 2022.
Most of the capital expenditure is earmarked for Bosch’s new 300-millimeter wafer fab in Dresden, where manufacturing capacity is to be expanded even faster in 2022. Around 50 million euros of the planned sum will be spent on the wafer fab in Reutlingen near Stuttgart in the coming year. Bosch will invest a total of 150 million euros in additional clean-room space here from 2021 to 2023. In Penang, Malaysia, Bosch is also building a test center for semiconductors from scratch. Starting in 2023, the center will test finished semiconductor chips and sensors.
Semiconductors as a unique selling proposition
Microelectronics is a key factor in the success of all Bosch’s business areas. Having recognized the potential of this technology early on, the company has been producing semiconductor components for more than 60 years. This makes Bosch one of the few companies that have a deep understanding of microelectronics as well as expertise in electronics and software. Bosch can combine this decisive competitive advantage with its strength in semiconductor manufacturing. The technology and services company has been producing semiconductor components in Reutlingen since 1970. They are used in both consumer electronics and automotive applications. Modern electronics in cars are the basis for reducing traffic emissions, preventing road accidents, and increasing powertrain efficiency.
Production in the 300-millimeter wafer fab in Dresden started in July of this year – six months earlier than planned. The chips made in the new plant are initially being installed in Bosch power tools. For automotive customers, chip production started in September, three months earlier than planned. Since 200-millimeter technology was introduced in 2010, Bosch has invested more than 2.5 billion euros in its wafer fabs in Reutlingen and Dresden alone. On top of this, billions of euros have been invested in developing microelectronics.
New test center in Penang
Another portion of the capital expenditure planned for 2022 will go into a new semiconductor test center in Penang. This highly automated and connected factory is set to perform testing of semiconductor chips and sensors starting in 2023. In total, Bosch has more than 100,000 square meters of land available on Penang’s mainland strip, which will be developed in stages. Initially, the test center will cover an area of around 14,000 square meters – including clean rooms, office space, research and development, and training facilities for up to 400 associates.
Earthworks for the new location started at the end of 2020, and work on the buildings began in May 2021. The test center is scheduled to start operations in 2023. The additional testing capacity in Penang is intended to open up the possibility of locating new technologies in Bosch’s wafer fabs in the future, such as silicon carbide semiconductors in Reutlingen. In addition, the new location in Asia will shorten delivery times and distances for the chips.
