Bosch plans to produce semiconductors in Dresden, Germany.
Bosch
Bosch is investing one billion euros in a new wafer fab in Dresden where chips are to be manufactured on the basis of 12-inch wafers to satisfy the demand generated by the growing number of Internet of Things (IoT) and mobility applications. Compared with conventional 6-inch and 8-inch wafer fabs, 12-inch wafer technology offers economies of scale. These are important since they allow Bosch to meet the rising demand for semiconductors brought about by connected mobility and applications relating to smart homes and smart cities, for example.
Construction of the high-tech plant is due for completion by the end of 2019. Following a rollout phase, manufacturing operations are expected to start at the end of 2021. Total investment in the location will come to around one billion euros. "The new wafer fab is the biggest single investment in Bosch’s more than 130-year history", said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. As many as 700 jobs are to be created in Dresden.
Investment in a growing market
"Semiconductors are the core components of all electronic systems. With connectivity and automation growing, they are being used in more and more areas of application. By extending our semiconductor manufacturing capacity, we are giving ourselves a sound basis for the future and strengthening our competitiveness", Denner said. According to a study by PricewaterhouseCoopers, the global semiconductor market is set to grow by more than 5 percent annually up to 2019, with the mobility and IoT market segments growing especially strongly.
Investment in Germany as a high-tech location
Brigitte Zypries, the German Federal Minister for Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie: BMWi), welcomed Bosch’s investment in Germany as a location: "We applaud Bosch’s decision to invest in Saxony. Strengthening semiconductor expertise in Germany, and thus in Europe as well, is an investment in a key technology of the future, and thus a very important step toward preserving and enhancing competitiveness, also of Germany as an industrial location." Subject to the approval of the European Commission, BMWi plans to support the construction and commissioning of the new wafer fab in Dresden.
"As an industrial location, the state of Saxony offers excellent conditions for enhancing our semiconductor expertise", said Dr. Dirk Hoheisel, member of the board of management of Robert Bosch GmbH. Dresden’s microelectronics cluster, also known as "Silicon Saxony", is unrivalled in Europe. It includes automotive suppliers and service providers, as well as universities offering technological expertise. The Digital Hub Initiative also launched by the BMWi aims to make Dresden an IoT ecosystem. Bosch intends to collaborate closely with local semiconductor companies, thereby reinforcing not only Germany’s, but also Europe’s, position internationally as an industrial location.