Bosch opens new semiconductor test centre for chips and sensors in Malaysia

2 October 2023

This brings Bosch's manufacturing network closer to its customer base in Asia, shortens delivery times and improves its competitiveness.

Penang is now Bosch’s biggest location in Southeast Asia

With the sustained global demand for chips in the automotive and consumer goods sectors, prominent semiconductor players such as Bosch are persistently broadening their semiconductor operations. Bosch has recently inaugurated a fresh testing hub dedicated to chips and sensors in Penang, Malaysia, at an expenditure of approximately 65 million euros. Furthermore, the company has blueprints to infuse an additional 285 million euros into the facility by the midpoint of the upcoming decade.

“With our new semiconductor test centre in Penang, we are creating additional capacity within our worldwide manufacturing network to meet the continued high demand for chips and sensors”.

Dr. Stefan Hartung, Chairman of the Bosch board of management

Worldwide expansion semiconductor production

Bosch is actively implementing a worldwide expansion approach for its semiconductor enterprise. In the forthcoming three years, the company intends to channel approximately €3billion into Dresden and Reutlingen. This financial commitment will be allocated through its proprietary investment scheme as well as in alignment with the European IPCEI ME/CT (Important Project of Common European Interest on Microelectronics and Communication Technologies) funding initiative.

Capitalising on the increasing worldwide demand for chips

In April of this year, Bosch revealed its intention to procure TSI Semiconductors, a chip manufacturer based in the United States. This strategic move involves a planned investment of $1.5 billion over the upcoming years, strategically aimed at capitalising on the increasing worldwide demand for chips, particularly within the automotive and electronics industries.

TSI Semiconductors, headquartered in Roseville, California, operates a semiconductor facility employing approximately 250 individuals. The company's primary focus revolves around the development and high-volume manufacturing of chips on 200-millimetre silicon wafers, catering to diverse applications within the mobility, telecommunications, energy, and life sciences sectors.

Silicon’s capacity to function under elevated temperatures, voltages, and frequencies, means silicon carbide semiconductors outperform other counterparts. This means they’re highly effective for diverse applications including solar-powered devices, electric vehicles, aerospace, and the burgeoning realm of 5G technology.

Both businesses have confirmed that the plant's initial SiC chip manufacturing, based on 200-millimetre wafers, is stated to commence in 2026, following a reconfiguration phase.

The utilisation of silicon carbide chips guarantees a minimum increase of six percent in range efficiency when compared to silicon chips constructed from alternative materials. By the year 2025, Bosch anticipates an incorporation of an average of 25 of these chips within each new vehicle.

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