German industrial huge Robert Bosch GmbH has mentioned it will commit €3 billion (just more than $3 billion) into its semiconductor company around the upcoming 4 decades, adding new chip output potential as properly as centers for exploration and testing.

The announcement arrived at the company’s Bosch Tech Working day 2022 function nowadays. Bosch Chairman Stefan Hartung explained the investment will be utilised to create two new personal computer chip improvement centers in Reutlingen and Dresden. In addition, the organization programs to extend its production potential by including 3,000 sq. meters of clean up-room space to an current wafer fab in Dresden.

Bosch said most of the funds will come via grants from the European Union and German federal governing administration, in just the framework of the European Chips Act, via a new Critical Job of Common European Fascination on microelectronics and conversation technology. The European Chips Act is a new piece of laws aimed at expanding domestic semiconductor production in the EU.

The German organization will incorporate €400 million of its have hard cash to the investment pot to develop its production capacity and change current factory place into new clean-room house, it reported. As soon as total, the extension will convey the Dresden facility’s full thoroughly clean-room place to a lot more than 44,000 square meters.

Some of the dollars will also be set aside to build a new semiconductor tests heart in Penang, Malaysia, which is anticipated to be up and working by the stop of future 12 months. The center will be made use of to examination concluded semiconductors and sensors, the corporation stated.

Bosch is not interested in setting up cutting-edge chip fabrication procedures. Instead, it said the dollars will be made use of to create services for producing semiconductor chips for the automotive sector, with production system sizes of amongst 40 and 200 nanometers. That’s a whole lot considerably less advanced than the five-nanometer and a few-nanometer manufacturing procedures now coming online at other chipmakers, these as Samsung Electronics Ltd. and Taiwan Semiconductor Producing Co. Ltd.

“Europe can and ought to capitalize on its individual strengths in the semiconductor industry,” Hartung stated, outlining the company’s designs. “More than at any time, the target have to be to create chips for the particular needs of European market. And that means not only chips at the base stop of the nanoscale.”

Bosch does in any case hope to make a good deal of dollars from its investments. As the corporation described, the share of the average car’s benefit represented by semiconductor chips is very likely to quadruple this 10 years, from less than $200 to more than $800.

Despite the fact that the focus is mainly legacy chips, Bosch stated it will use some of the financial commitment to pursue new avenues of innovation. In distinct, it’s on the lookout to produce extra advanced methods-on-a-chip, this kind of as radar and lidar sensors that will be utilized by autonomous cars to help in navigation. Bosch explained its investigation will focus on boosting these factors, creating them smaller sized and also more affordable to manufacture.

Photo: Bosch

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