Bosch plans €3 billion semiconductor investment

Bosch will build two new development centres – in Reutlingen and Dresden – at a combined cost of over 170 million euros.

In addition, the company will spend 250 million euros over the coming year on the creation of an extra 3,000 square meters of clean-room space at its wafer fab in Dresden.

“We’re gearing up for continued growth in demand for semiconductors – also for the benefit of our customers,” explained Bosch CEO Stefan Hartung.

The objective is to double Europe’s slice of global semiconductor production from 10 to 20 % by the end of the decade.

The newly launched IPCEI on Microelectronics and Communication Technology is intended primarily to promote research and innovation.

“Europe can and must capitalise on its own strengths in the semiconductor industry,” Hartung said. “More than ever, the goal must be to produce chips for the specific needs of European industry. And that means not only chips at the bottom end of the nanoscale.”

Electronic components used in the electromobility industry, for example, require process sizes of between 40 and 200 nanometers. This is exactly what the Bosch wafer fabs are designed for.

Within the framework of the European Chips Act, the European Union and German federal government are providing additional funding to develop a robust ecosystem for the European microelectronics industry.

Smaller, smarter and cheaper systems-on-a-chip, such as the radar sensors a vehicle uses to perform 360 degree scans of its surroundings during automated driving, will be developed.

MEMS for the consumer goods industry will also be a focus for investment. Bosch company researchers are currently using this technology to develop a new projection module that is so tiny it can be built into the temple of a pair of smartglasses.

“In order to cement our leading market position in MEMS technology, we also plan to manufacture our MEMS sensors on 300-millimeter wafers,” Hartung said. “Production is scheduled to start in 2026. Our new wafer fab gives us the opportunity to scale production – an advantage we intend to exploit to the full.”

Alongside its silicon carbide (SiC) ICs, Bosch is planning development of gallium nitride devices for electromobility applications.

Says Hartung, “These chips are already found in laptop and smartphone chargers.”

Before they can be used in vehicles, they will have to become more robust and able to withstand substantially higher voltages of up to 1,200 volts.

Bosch is also building a new test centre for semiconductors in Penang, Malaysia to be operational by 2023.