Bosch will open a 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 automotive 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 write. It is unclear exactly how many chips the manufacturer wants to make in the fab in the future, but chips would mainly be built for Internet of Things devices, especially equipment that contains artificial intelligence. Chips are also made in the factory for the automotive industry. The company is investing a billion euros in the development of the factory and wants to increase the number of employees from 250 to 700, although it is not known when this should happen.

With the new factory, Bosch hopes to be able to meet the high demand for chips, although the company’s CEO said earlier that the shortage may not be resolved 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.