To sort out chip scarcity, Bosch will make investments $296M to construct semiconductors TechCrunch

Bosch is growing its beforehand talked about funding in semiconductor manufacturing to remain on prime of ongoing chip shortages. The corporate is including $296 million, of which $473 million Bosch promised to spend on new manufacturing amenities in 2022 final 12 months.

Most of final 12 months’s capital was earmarked for Bosch’s new 300-millimeter wafer fabrication facility in Dresden, with about $57 million put aside for Reutlingen close to Stuttgart, the place Bosch started manufacturing in December. This new funding will virtually completely go to Reutlingen to construct new manufacturing area and a complete of 44,000 sq. meters of contemporary cleanroom area between now and 2025, a step the corporate is taking in response to rising demand for semiconductor and micro electro-mechanical programs. MEMS) sensors in each the automotive and client electronics markets.

“Bosch is already a number one chip producer for automotive purposes,” Markus Hein, a member of Bosch’s board of administration and chairman of the Mobility Options enterprise sector, stated in an announcement. “And that is a place we need to consolidate.”

(Cleanrooms are specifically constructed and enclosed in order that issues like airborne particles, temperature, lighting, noise, air strain and different environmental components may be tightly managed. Since Bosch’s semiconductors, like many others, are manufactured from silicon carbide Nevertheless, the manufacturing course of requires full readability – silicon is present in sand and have to be refined earlier than it may be used for manufacturing. It’s an extremely exact course of that may be fully thrown away if Even a tiny speck of mud could land on the chip on the incorrect time.)

“We’re systematically increasing our manufacturing capability for semiconductors in Reutlingen,” Dr. Stefan Hartung, chairman of Bosch’s administration board, stated in an announcement. “This new funding won’t solely strengthen our aggressive place, however will even profit our clients and assist tackle the disaster within the semiconductor provide chain.”

Reutlingen Wafer Fabs will produce 6- and 8-inch wafers; 6-inch wafers aren’t in use right now as a lot as 8-inch or 12-inch wafers, however the course of might cut back the manufacturing price of semiconductor merchandise equivalent to LEDs and sensors. There’s a scarcity of 8-inch wafers particularly since 2019, they usually have been used primarily in issues like sensors, MCUs, and wi-fi communication chips. Bosch says Reutlingen’s enlargement will meet the rising demand for MEMs within the automotive and client sectors, and for silicon-carbide energy semiconductors.

Bosch’s Dresden facility will produce extra 12-inch silicon chips, that are used to fabricate high-performance merchandise equivalent to CPUs, logic ICs and reminiscence.

“AI strategies mixed with connectivity have helped us obtain steady, data-driven enhancements in manufacturing and thereby produce higher and higher chips,” Hein stated. “This consists of the event of software program to allow automated classification of defects. Bosch can also be utilizing AI to reinforce materials move. With its excessive degree of automation, this state-of-the-art manufacturing setting in Reutlingen is the way forward for the plant and Will defend the roles of the folks working there.”

Bosch additionally plans to increase the present energy provide facility, developing an extra constructing for media provide programs. The brand new manufacturing space ought to begin operations in 2025.

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