German tech giant Bosch has opened the doors to a new semiconductor manufacturing facility, with hopes to ease automotive supply constraints.

Since late 2020, the semiconductor shortage has wreaked havoc for automotive manufacturers, resulting in a drop in production and the removal of electronic features in some model variants.

This has dramatically increased the demand for semiconductor chips and has thus incentivized new suppliers to step into the arena.

Bosch’s new site, located in Dresden, Germany, is estimated to cost in excess of €1 billion (AU$1.57 billion) to build, with the production of the chips to begin in September this year.

“The new [factory] is the single largest investment in the company’s history. This cannot be stressed too much. Its size and additional production capacity alone are impressive. The very latest methods of data-driven continuous improvement in production make the Dresden plant a smart factory,” said Angela Merkel, German Chancellor.

“To put it another way: in this plant, natural and artificial intelligence have joined forces with the internet of things to form a productive symbiosis.”

Source:

Car Advice | Bosch opens $1.57 billion semiconductor production facility in Dresden, looks to ease automotive supply constraints 

Bosch | Bosch opens chip factory of the future in Dresden 

10 June 2021