Bosch invests 3 billion euros in semiconductor division through European Chips Act

German Bosch will have invested 3 billion euros in its semiconductor division by 2026. The company wants to increase its production capacity and supply more chips to the car industry. Some of Bosch’s chips will be between 40 and 200nm in size.

According to The Register Bosch will use the money to build two new development centers in Germany. A first in the city of Reutlingen and a second near its factory in Dresden. A new clean room of approximately three square kilometers will also be built there. Clean rooms are areas that are hermetically sealed from the outside world so that dust particles, aerosols or other contaminants cannot disrupt the production process of the chips.

According to The Register, the funding will come from the European Union and the German federal government, who have made the money available within the framework of the European Chips Act. In the future, Bosch wants to market its chips mainly in the car industry and is also looking at the development of new chips for cars that can help control radar systems, for example.

The chips will be baked at sizes between 40 and 200 nm and not at 3 or 5 nm. According to a CEO of Bosch’s board of directors, Europe should manufacture chips for its own industry and not just in the smallest format.