The chip crisis is pressing and Bosch responds with a new plant in Germany

The semiconductors will be produced mainly for the automotive industry and the German company's tools in a state-of-the-art plant

A technician at work in Bosch's new chip factory in Dresden (press office photo) They are already there 250 people at work in the 72 thousand square meters of the factory inaugurated by Bosch in Dresden, Saxony: when the new plant will be fully operational, there will be 700, for the production of semiconductors dedicated to the German brand's tools (from July) and for the automotive industry (since September). The roadmap was launched yesterday, with a ribbon-cutting ceremony in which German Chancellor Angela Merkel and European Commission Vice-President Margrethe Vestager participated online to underline the strategic importance of such an event.

The plant will receive an investment of one billion euros, the largest in the company's 130-year history, with state aid of 200 million euros within a European investment scheme, reports Reuters. The first chips will be baked six months in advance with the main purpose of supplying Bosch automotive customers without depending on third parties, producing state-of-the-art components for specific tasks such as energy management or assisted braking systems. The German giant expects the global increase in demand to increase by 11% this year.

The Dresden plant will be powered by artificial intelligence and based on the Internet of Things (AioT), equipped with a digital twin and the possibility of remote assistance in augmented reality. Every second the machines will generate an amount of data equal to 500 pages of written text, scanned in real time by self-optimization algorithms to detect the "signatures", small anomalies in sequence on the surfaces of the wafers, in order to correct the initial causes that may compromise the reliability of the product. All of this will help kickstart full-scale production while saving time-consuming testing, thereby accelerating response to customer demand.

The Chip Crisis Continues

The Chip Crisis Has Hit a wide range of sectors, including household appliances and automotive, where electronics were worth 18% of the cost per car in 2000, 40% today and 45% ten years from now. According to a report by AlixPartners, this shortage could cost $ 110 billion in revenues in 2021 to the entire automotive sector, while Forrester believes that the situation will continue until 2023, thanks to an increase in demand from data centers.

The distribution of 5G networks and new devices will also have a weight, which will require a 40-80% increase in chips compared to the 4G era, according to Asia Nikkei. The increase in demand pushed the increase in revenues of the sector by 10.4% in 2020, equal to 466.2 billion, according to Gartner. In this scenario, Washington and Brussels have taken countermeasures. The US Senate is about to approve a $ 52 billion subsidy plan to make chips in ten new plants, but Commerce Secretary Gina Raimondo said "next year will be a daily challenge." The European Union would like to double its production share to 20% by 2030 with the Digital Compass plan. Internal Market Commissioner Thierry Breton has advocated an alliance between manufacturers that could include StMicroelectronics, Nxp, Infineon and Asml.


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