Bosch plans to establish an independent Semiconductors business division on 1 January 2028 as part of a restructuring aimed at expanding its chip operations beyond the automotive industry. The German technology group is targeting annual semiconductor sales of €5 billion by 2030.
The new division will remain within Bosch’s Mobility business sector but operate separately from the existing Mobility Electronics division. Under the revised structure, Mobility Electronics will concentrate on electronic control units and power electronics for vehicles, while Semiconductors will assume responsibility for the development, manufacturing and distribution of microchips and sensors.
Markus Heyn, deputy chairman of the board of management of Robert Bosch GmbH and chairman of the Bosch Mobility business sector, said semiconductors were central to the company’s operations.
“Semiconductors are the linchpin of our connected world and a key success factor for all of Bosch’s business fields,”
Robotics and AI Among Target Growth Markets
The restructuring is intended to give Bosch greater flexibility in responding to developments in the global semiconductor industry and pursuing opportunities in markets beyond its established automotive business.
The company sees potential in industrial automation, humanoid robotics and semiconductor components for data centres supporting artificial intelligence applications. These markets are expected to complement existing demand from automotive electronics, smartphones and household appliances.
Erik Rein, who is responsible for Bosch’s semiconductor business, identified MEMS sensor technology and the integration of chips into complete system solutions as key competitive strengths.
“Our unique strengths in the semiconductor business are our market and technology leadership in MEMS sensor technology, as well as the integration of semiconductors into system solutions. This particularly includes silicon carbide chips and application-specific integrated circuits (ASICs). We want to expand these strengths and leverage them in selected new markets,”
Bosch also plans to make more of its semiconductor manufacturing capacity available to external customers, expanding its foundry business through contract manufacturing for third parties.
Global Manufacturing Network Supports Expansion
The company’s semiconductor growth strategy builds on investments in manufacturing facilities across several regions. Bosch said it has invested approximately €3 billion in its German semiconductor plants in Dresden and Reutlingen in recent years, alongside around US$2 billion in the expansion of its Roseville facility in the United States.
Its manufacturing network also includes approximately 40 locations worldwide, which the company uses to distribute production risks and support supply chain resilience.
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Further capacity development includes expansion at the company’s test facility in Penang, Malaysia. Bosch also holds a 10% stake in the European Semiconductor Manufacturing Company (ESMC) manufacturing consortium in Dresden, providing it with direct access to additional chip production capacity.
With the new organisational structure, Bosch intends to strengthen the semiconductor business as a distinct growth area while using its existing manufacturing footprint, sensor expertise and system integration capabilities to address demand from emerging technology markets.