Jul 13, 2022
Bosch to Spend $3 Billion to Bolster European Chip Supplies
(Bloomberg) -- Germany’s Robert Bosch GmbH is making a bigger bet on semiconductors with plans to spend 3 billion euros ($3 billion) to help ease a worldwide shortage of computer chips that has crimped vehicle production.
The auto-parts supplier said Wednesday it will make the investment by 2026 as part of European Union and German government efforts to double Europe’s share of global chip output to 20% by the end of the decade.
The US government also has stepped up calls to boost domestic production after supply constraints sparked by the pandemic heightened risks of over-reliance on Asian imports.
“We’re gearing up for continued growth in demand for semiconductors,” Bosch Chief Executive Officer Stefan Hartung said in a statement.
It’s the latest move by Bosch to expand chip production after it spent 1 billion euros on a new wafer plant in the Dresden, Germany, that opened in June of last year. The additional semiconductor supply will be used not only in cars and trucks, but also for a number of other applications from household appliances to wearable technology, Bosch said.
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