Bosch opens German chip plant
Robert Bosch opened a 1 billion euro chip plant in Germany on Monday, in a record investment by the leading automotive supplier as it stakes a claim to equipping the latest electric and self-driving cars. The plant, located in a semiconductor hub near Dresden, enters service at a time of very tight supply and will increase Bosch's ability to serve carmakers directly and rely less on third-party manufacturers. "Every chip that we make here in Dresden is one chip less that is lacking. That helps," management board member Harald Kroeger told Reuters in an interview. "The fab may help to insulate Bosch and its key customers somewhat," said Asif Anwar at Strategy Analytics. The Bosch plant, which received 200 million euros in state aid under a European Union investment scheme, will start making chips for power tools in July with output of automotive chips to follow from September. "The state-of-the-art technology in Bosch's new semiconductor factory in Dresden shows what outstanding results can be achieved when industry and government join forces," Bosch quoted Vestager as saying. Kroeger said Bosch supported a broader strategic push by Brussels to revive Europe's semiconductor industry - its latest plan that was recently unveiled targets doubling the region's share of chip production to 20% by 2030.