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Bloomberg
Germany’s Robert Bosch GmbH is making a bigger bet on semiconductors with plans to spend 3 billion euros ($3 billion) to help ease a worldwide shortage of computer chips that has crimped vehicle production.
The auto-parts supplier said on Wednesday it will make the investment by 2026 as part of European Union and German government efforts to double Europe’s share of global chip output to 20% by the end of the decade.
The US government also has stepped up calls to boost domestic production after supply constraints sparked by the pandemic heightened risks of over-reliance on Asian imports.
It’s the latest move by Bosch to expand chip production after it spent 1 billion euros on a new wafer plant in the Dresden, Germany, that opened in June of last year. The additional semiconductor supply will be used not only in cars and trucks, but also for a number of other applications from household appliances to wearable technology, Bosch Chief Executive Officer Stefan Hartung said in a statement.