Bosch opens new chip factory in Dresden in June

Bosch will open a semiconductor factory in the German city of Dresden next week. The manufacturer is investing a billion euros to make chips for IoT equipment and for the car industry. After opening, the factory must grow and the number of employees must triple.

Bosch will open the factory on June 7 in the presence of Chancellor Angela Merkel, local media report. It is not clear exactly how many chips the manufacturer wants to make in the future in the fab, but chips would mainly be built for internet-of-things devices, especially equipment containing artificial intelligence. Chips are also made in the factory for the automotive industry. The company is investing a billion euros in expanding the factory and wants to increase the number of employees from 250 to 700, although it is not known when that should happen.

With the new factory, Bosch hopes to meet the high demand for chips, although the company’s CEO previously said that the shortage may not be solved until next year. Bosch says it hopes the investment will also benefit the Dresden region of Saxony. There are now also many other chip manufacturers with plans; Globalfoundries and Infineon plan to invest 400 million and 1.1 billion euros respectively over the next five years to expand their facilities there.