Bosch announced on October 29 that it will invest 400 million euros in 2022 to expand the production capacity of its fabs in Dresden and Reutlingen, Germany, and establish a semiconductor testing center in Penang, Malaysia. Among them, most of the investment will be used to accelerate the expansion of the 12-inch wafer fab in Dresden.

“Demand for chips is continuing to grow at breakneck speed,” Bosch chairman Volkmar Denner said. “In light of current developments, we're systematically expanding our semiconductor production so we can provide our customers with the best possible support."

Bosch's Dresden fab was put into operation in June this year, with a total investment of US$1.17 billion. Earlier this year, Bosch also expanded its Reutlingen fab near Stuttgart, which occupies 377,000 square feet.

Bosch will invest 50 million euros in the 8-inch wafer fab in Reutlingen in the next year, and will invest 150 million euros in the fab during 2021-2023 to expand the clean room space. The first-stage expansion of the fab is about 10%, mainly for the increase in demand for MEMS sensors and silicon carbide power semiconductors. The chip test center in Penang plans to start testing chips and sensor products in 2023. The initial area of the test center is about 150,000 square feet, and the test facility will be constructed in phases.