Automotive supplier Robert Bosch GmbH will invest 1 billion euros (about 7.743 billion yuan) to build a semiconductor factory to meet the growing demand for components for autonomous driving technology.
It is learned that this is the largest investment made by Bosch in its 130-year history. Bosch said that the new factory is located in Dresden, Germany, with a total construction area of 100,000 square meters. It is expected to be completed by the end of 2019 and will build a fully automatic production line based on 300mm silicon wafers. It will employ 700 employees and will start producing chips for self-driving cars, smart homes and connected city infrastructure in 2021.
Bosch, best known for traditional auto parts such as brake systems and internal combustion engines, is also a long-time software developer. As the nature of driving changes, the company is investing heavily in newer technologies. For more than 40 years, Bosch has been making chips for everything from smartphones to smartphones. The company said an average of nine Bosch chips were found in every car sold worldwide last year.
"Expanding our production capacity will help us improve our competitiveness, especially as the use of semiconductors continues to grow with increasing connectivity and automation," CEO Volkmar Denner said in the statement.
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