Categories: News

the company opens a semiconductor factory

To overcome delays and production stoppages following the Covid-19 pandemic, the Bosch group decides to open a semiconductor factory.

After a year shaken by a semiconductor shortage, which has affected not only all automotive equipment manufacturers but also all digital industries, good news is likely to change the current situation.

Indeed, the Bosch group has just announced the inauguration of a semiconductor factory in Germany, in the city of Dresden.

An industry lacking chips

The automotive industry is currently running out of chips for keep production in the normal range. And virtually all automotive suppliers have seen their production impacted.

In Europe, Stellantis has seen several of its brands whose production has been halted, such as the assembly lines of the Peugeot 308 for example earlier in the year.

The pandemic and the rebound in the economy this year have created a huge bottleneck in semiconductors as the auto industry grows more greedy for it. Particularly because of new on-board technologies and excessive connectivity.

A factory welcome to Germany

Bosch has officially started production at its new semiconductor plant in Dresden: a investment of one billion euros and nearly 100,000 m2 of space are dedicated to the industrial complex.

“It is strategically important for Bosch to develop and manufacture semiconductors itself as a core technology,” Volkmar Denner, CEO of Bosch, reportedly said at the opening ceremony. Until 700 people will be employed there.

But Bosch warns from the outset: the German company will not be a “super hero” for all that, in a crisis sector very affected by the shortage. And even if this factory will make it possible to slightly reduce the current crisis in the sector, it remains dependent on certain suppliers outside Europe.

The first deliveries for the automotive industry will be made from here next september.

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