Tech giant Bosch will start producing computer chips from July, to supply the auto industry from September
German engineering and technology company Bosch has opened a new semiconductor plant with the aim of supplying the automotive industry, among other areas of business.
Production of computer chips for Bosch power tools is expected to begin in July this year, six months earlier than initially planned, before production begins for auto customers in September.
The plant in Dresden, Germany, cost the company about 860 million pounds (1 billion euros) to build and is expected to create 700 jobs.
The auto industry has been hit hard by the global shortage of semiconductors during the pandemic, which has led many manufacturers to seek to overhaul their component supply chains.
The shortage, initially caused by an unprecedented rise in demand, was exacerbated by the chip factory fire in Japan and power outages in the chip industry hotspot in Texas, in the United States.
Bosch has implemented critical industrial intelligence technology at the Saxony facility , which the company says will “save auto customers the need for time-consuming trials that would otherwise be necessary before a production release”.
Bosch board member Harald Krueger said, “Composites chips are the ultimate discipline in semiconductor technology. That’s because in cars, these little building blocks have to be especially strong.”
Bosch says developing automotive semiconductors is more complex than in other fields, and requires “specialized expertise” it claims to have accumulated over the past few decades.
“In 2016, every new car worldwide had an average of more than nine Bosch chips on board, in devices such as the airbag control unit, braking system and parking assist system,” the company said. “In 2019, that number was already over 17.”
Germany technology and parts supplier Robert Bosch opened a €1 billion ($1.2 billion) chip factory in Dresden
Bosch has opened a new semiconductor factory in Germany with the goal … Costing €1 billion (around £860 million) to build
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