Bosch to Launch New Semiconductor Division

According to Robert Bosch GmbH, the German technology group plans to establish a dedicated semiconductor division starting in 2028, aiming to capitalize on surging chip demand from fast-growing markets such as data centers, artificial intelligence (AI), and humanoid robotics.

Bosch's semiconductor operations have traditionally been part of its Mobility Electronics division, alongside its broader automotive technology business. Under the new organizational structure, the semiconductor business will become an independent division, allowing the company to respond more effectively to changing market conditions and emerging customer requirements.

The announcement follows Bosch's recent plans to restructure parts of its business into independent subsidiaries to improve operational flexibility and competitiveness. The company believes a dedicated semiconductor division will provide greater strategic focus and enable it to better capture growth opportunities across the global semiconductor market.

"By establishing our own division, we are opening a new chapter in Bosch's more than 60-year history in the semiconductor industry," said Erik Rein, who leads Bosch's semiconductor business. He added that the new structure would allow the company to tailor its products and services more closely to customer needs in automotive, consumer electronics, and other markets.

Bosch reported first-half sales of €46.4 billion (approximately $51.9 billion), including €27.8 billion from its Mobility business. Establishing a separate semiconductor division is also expected to make the chip business's contribution to the group's overall growth more transparent.

The move highlights Bosch's growing ambitions in the expanding semiconductor market, where demand has accelerated since the AI boom began in late 2022, driving substantial investment in data center infrastructure and advanced computing technologies.

Bosch aims to generate approximately €5 billion in semiconductor revenue by the end of this decade. In recent years, the company has invested around €3 billion in its semiconductor manufacturing facilities in Dresden and Reutlingen, Germany, strengthening its production capabilities.

Beyond Europe, Bosch is expanding its global semiconductor manufacturing footprint. The company plans to invest approximately $2 billion in equipment for its Roseville, California, facility to manufacture specialized silicon carbide (SiC) chips. It also intends to expand its testing center in Penang, Malaysia, by the middle of the next decade.

Through its new organizational structure and continued investment in manufacturing capacity, Bosch aims to strengthen its position in the global semiconductor industry and capture growing opportunities in automotive electronics, AI infrastructure, power electronics, and next-generation technologies.