Technology group Bosch will invest EUR 3 billion (roughly Rs. 24,020 crore) in chip production by 2026, including in opening two new development centres and expanding its wafer factory in Dresden, the company said on Wednesday.
The investment, for which Bosch will seek European Union funding under the Important Projects of Common European Interests (IPCEI) framework, should boost Europe's production capacity for chips in a global market still dominated by US and Asian players.
"Europe can and must capitalise on its own strengths in the semiconductor industry," said Chief Executive Stefan Hartung. "The goal must be to produce chips for the specific needs of European industry."
"Europe can also capitalize on its own strengths in the semiconductor industry," said chief executive Stefan Hartung. "The goal should be to make chips for the specific needs of European industry."
Even though inflation relieves pressure on some sections of the sector by reducing demand for pricey consumer items, the CEO anticipates bottlenecks in chip supply, including congested transportation networks and low production capacity, to persist for a number of more months.
In order to complete the manufacturing process, Bosch's chips must be transported from Germany to Malaysia and back again, so any shipping disruption might lengthen delivery timelines by several weeks, according to Hartung.
However, there are also locations where not as much capacity was added and demand is still very strong. "There are areas where surely demand will reduce such that you can order significant sums at any moment," he said.
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