German technology giant Bosch has announced the establishment of a dedicated semiconductor division to restructure its chip operation and respond to high demand for robotics, AI data centres, consumer electronics, and industrial automation. Moving beyond manufacturing specialised chips used in electric mobility units, the company aims to expand its manufacturing capabilities and react faster to dynamic, high-growth tech markets. The new division will officially start operations on January 1, 2028, and will operate from the company’s existing research, development, and manufacturing sites worldwide.
Bosch aims to generate approximately €5 billion in semiconductor sales by 2030 by targeting high-demand markets and enabling the new division to capitalise on the company’s established strengths in microelectromechanical systems (MEMS) sensors, silicon carbide (SiC) power semiconductors, and application-specific integrated circuits (ASICs). The new division will operate independently, allowing Bosch to pitch high-precision sensors for industrial automation and humanoid robots directly to new, smart-system developers beyond its traditional automotive customer base.
In recent years, the company has invested €3 billion in its wafer fabrication facilities in Dresden and Reutlingen, Germany, and is investing around $2 billion to make its Roseville facility in California capable of manufacturing silicon carbide chips. It also plans to extend its semiconductor testing centre in Penang, Malaysia, through phased investments and site development.
Through this reconstruction, Bosch intends to focus its semiconductor business more on new opportunities outside the automotive industry, reflecting the growing importance of semiconductors in emerging technologies.
