Automotive components and parts supplier Robert Bosch GmbH will invest 1 billion euros (7,743 million yuan) to build a semiconductor factory to cope with the growing demand for self-driving car parts, which will be the largest investment in the history of Bosch .
Bosch said in a statement that the factory in Dresden, Germany, will start to produce chips for self-driving cars, smart homes and connected city infrastructure in 2021. The plant will be completed in 2019 and will be employed 700 employees.
Volkmar Denner, the company's CEO, said in a statement: "Expanding production capacity will help increase our competitiveness, and with the continuous increase in connectivity and automation, the use of semiconductors is also increasing."
Bosch is known for producing traditional automotive components such as brake systems and internal combustion engines, and is a long-standing software development company. As the nature of driving changes, the company is investing heavily in newer technologies. For more than 40 years, Bosch has been producing chips for a variety of products, including smartphones. The company said that every car sold worldwide last year contained an average of nine Bosch-made chips.
Although Bosch is committed to researching and developing technology and projects to improve connectivity and create cleaner city centers, the company is under pressure as it helps automakers avoid diesel emissions regulations. Earlier, Bosch was implicated in the fourth allegation of cheating emissions from automakers. Bosch and GM were listed as co-defendants in a lawsuit in which a diesel pickup truck owner accused General Motors of using illegal software.
A spokesperson said the chips produced in Dresden will be new members in a variety of product portfolios including Bosch airbag sensors, autonomous driving controllers, pressure gauges and communication technology.