Amid chip shortage, Bosch spends $ 467 million to expand semiconductor factories
The investments come as the industry reeling from a global shortage of microchips that has plunged global vehicle production and hampered new vehicle sales and inventory. According to an estimate from AutoForecast Solutions, about 9.74 million units have been pulled from the production plans of automakers around the world since the start of the year due to the chip crisis.
Bosch said most of the money he plans to spend will go to his Fabulous Dresden, which the provider opened in June to the tune of $ 1.17 billion. The investment will help the plant increase chip production at a faster rate than initially expected.
“Every additional chip we produce will be useful in the current situation,” Bosch board member Harald Kroeger said in a statement.
The company also plans to further expand its 377,000 square foot Reutlingen plant near Stuttgart. Bosch, which completed the plant expansion earlier this year, plans to expand the facility by an additional 33,000 square feet by the end of 2023.
Bosch plans to build a semiconductor test center in Malaysia, which it says will start testing chips and sensors in 2023. The vendor said the test center will be built in stages, with the test center doing initially approximately 150,000 square feet.
Jiang Jian, vice president of Bosch China, told Bloomberg this month that the semiconductor shortage is expected to continue until 2022. He said chip makers could only meet about 20% of customer orders in July, while more than half could not be met. in August.
Robert Bosch ranks # 1 on the Automotive News list of the top 100 global suppliers, with global sales to automakers of $ 46.5 billion in 2020.