Bosch Confirms $1 Billion Semiconductor Plant in Germany

Confirming media reports from last week, Robert Bosch GmbH says it will open a €1 billion ($1.1 billion) semiconductor plant in Dresden, Germany, in 2021.

The project, which will be partially funded by the German government and European Union, is the biggest single investment in Bosch’s 130-year history. Bosch expects to complete the construction of the facility by the end of 2019 and eventually employ as many as 700 people there.

The plant will produce semiconductor chips made from a 12-inch diameter silicon wafer. More chips can be made per manufacturing cycle with 12-inch chips than with current 6- or 8-inch units, thus making the process more cost effective.

The semiconductors will be used for a variety of mobility and internet-of-things applications, including autonomous vehicles, industrial robots, smart homes and other connected devices. The average passenger vehicle produced last year contained nine Bosch semiconductors, according to the supplier.