German engineering and technology giant Bosch plans to establish a dedicated semiconductor division from January 2028 as it seeks to expand its chip business, attract more external customers and achieve annual semiconductor sales of €5bn by 2030.
The new division will separate Bosch’s semiconductor operations from its existing Mobility Electronics unit, although the business will remain under the company’s broader Mobility division.
The restructuring is designed to give the semiconductor business greater operational focus and allow it to respond more directly to changing market conditions and customer demands.
Bosch, one of the world’s largest automotive suppliers, currently produces semiconductor components used in vehicles and e-bikes. The company is also looking to expand its reach beyond the automotive industry into consumer electronics and other technology markets.
Its €5bn sales target represents a significant expansion of the business by the end of the decade. Bosch is aiming to benefit from growing demand for semiconductors as digital technologies, connected devices and advanced electronic systems become increasingly important across industries.
The company also plans to make more of its manufacturing capacity available to external partners while strategically expanding its foundry business, which involves manufacturing chips for other companies.
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Bosch semiconductor chief Erik Rein said the new structure would help the company serve customers more effectively across different sectors.
The company has described the move as a new chapter in its more than 60-year history in the semiconductor industry, reflecting its ambition to build on its existing manufacturing and research capabilities.
Bosch operates a global network of approximately 40 semiconductor sites covering research, development and production.
It has invested around €3bn in its semiconductor facilities in Dresden and Reutlingen, Germany, in recent years. It is also committing about $2bn to equip its Roseville, California, plant to manufacture specialised silicon carbide chips, which are used in power electronics.
In Asia, Bosch plans to expand its semiconductor test centre in Penang, Malaysia, by the middle of the 2030s. The expansion is expected to strengthen its testing capabilities as the company develops its global chip operations.
The restructuring comes as Bosch undertakes a wider corporate reorganisation aimed at making its business units more flexible and responsive to market changes.
By establishing a dedicated semiconductor division, the company is seeking to give its chip operations a clearer commercial focus, deepen relationships with external customers and position itself for growth in an increasingly competitive global semiconductor market.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
