Bosch Doubles Down on Chip Wager

Tier 1 supplier Bosch says it will expand its investment in semiconductors in an effort to relieve the industry’s widespread shortage, adding another nearly $750 million to the $473 million outlay previously announced for its global semiconductor plants.

About a quarter of the total $1.2 billion will go to expanding production space at its Reutlingen, Germany, wafer plant and adding required clean-room facilities between now and 2025, the company says.

Bosch also is adding to its existing power supply facility at Reutlingen, with the new production area expected to go into operation in 2025.

Bosch announced the initial $473 million investment in October to expand semiconductor operations in Dresden, Germany, as well as the Reutlingen facility and an operation in Penang, Malaysia. Of that, $59 million was earmarked for the Reutlingen plant and another $177 million for clean rooms in Reutlingen to be completed by 2023. With the additional investment, clean-room space at Reutlingen will expand from 367,000 sq.-ft. (35,000 sq.-m) today to more than 474,000 sq.-ft. (44,000 sq.-m) by the end of 2025.

The Reutlingen investment will increase output of the plant’s existing 6- and 8-in (15-20 cm) wafer production, primarily with a focus on meeting growing demand for microelectromechanical systems (MEMS sensors) in the automotive and consumers sectors and for silicon-carbide power semiconductors, which Bosch has been producing since December. Silicon-carbide chips are expected to be used extensively in electric-vehicle and other electric mobility applications.

The Reutlingen operations have been producing semiconductors for more than 50 years and employs 8,000 workers.