Bosch to invest 400 million euros in semiconductor fabs production in 2022

In the face of the global chip shortage, Bosch is increasing its capital expenditure. Just a few weeks after opening its new wafer fab in Dresden, the technology supplier has now announced another nine-figure investment in its chip manufacturing facilities.

In 2022 alone, Bosch plans to invest more than 400 million euros (Rs 3,306 crore) in expanding its wafer fabs in Dresden and Reutlingen, Germany, and its semiconductor operations in Penang, Malaysia.

“Demand for chips is continuing to grow at breakneck speed. In light of current developments, we are systematically expanding our semiconductor production so we can provide our customers with the best possible support,” says Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. 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.

Faster ramp-up in Dresden
“Our aim is to ramp up production of chips in Dresden earlier than planned and at the same time expand clean-room capacity in Reutlingen. Every additional chip we produce will help in the current situation,” says Harald Kroeger, member of the board of management of Robert Bosch GmbH.

In two stages, a total of more than 4,000 square meters will be added to the current 35,000 square meters of clean-room space in Reutlingen. The first stage, adding 1,000 square meters of production area for 200-millimeter wafers to bring the total to 11,500 square meters, has already been completed. This involved converting office space into a clean room over recent months and connecting it to the existing wafer fab via a bridge. The new facility has been producing wafers since September. “We’ve already expanded our manufacturing capacity for 200-millimeter wafers by some 10 percent,” Kroeger says. The capital outlay for this came to 50 million euros (in 2021). In making this move, the company is responding in particular to increased demand for MEMS sensors and silicon carbide power semiconductors. The second stage of the expansion will create a further 3,000 square meters of clean-room space by the end of 2023. To this end, the company will invest some 50 million euros in both 2022 and 2023. Bosch is also creating 150 new jobs in semiconductor development at its Reutlingen location.

New test center in Penang, Malaysia
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.

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.

“Bosch can draw on its specific semiconductor and automotive expertise to develop superior electronic systems. This benefits our customers and the countless people who want to continue to enjoy safe and efficient mobility in the future,” says Harald Kroeger, member of the board of management of Robert Bosch GmbH