Bosch, a leading technology and engineering company, is strengthening its semiconductor business with the opening of a new testing center in Penang, Malaysia. The facility, built at a cost of approximately EUR65 million, will focus on testing chips and sensors. Bosch plans to invest an additional EUR285 million at this location by the mid-2020s.

Dr. Stefan Hartung, chairman of Bosch, highlighted the significance of semiconductors for the company, calling them a “critical success factor” across all of Bosch’s business fields. The expansion of the semiconductor business is considered strategically important for Bosch.

In addition to the investment in Penang, Bosch has ambitious plans for Germany. It aims to invest around EUR3 billion in Dresden and Reutlingen over the next three years. This investment falls under the European funding program IPCEI (Important Project of Common European Interest) Microelectronics and Communication Technology, as well as Bosch’s own investment plan.

Furthermore, Bosch intends to acquire parts of TSI Semiconductors’ business in Roseville, California, and this acquisition is expected to be completed later this year. Following the acquisition, Bosch plans to invest approximately EUR1.4 billion in upgrading the factory for the production of state-of-the-art silicon carbide (SiC) semiconductors.

The new testing center in Penang, along with the investments in Germany and California, will provide Bosch with increased capacities to meet the growing demand for chips and sensors worldwide.

Overall, Bosch’s expansion in the semiconductor sector reflects its commitment to staying at the forefront of technology and catering to the evolving needs of various industries.