German Bosch manufacturer opened a semiconductor chip plant. A new enterprise is assessed as a way to help Europe and to overcome the global shortage of chips, writes Bloomberg.
The factory is located near Dresden in Germany. The launch of the own lines for the release of chips cost Bosch at 1.2 billion dollars. The initiative of one of the flagships in electronics will help to keep the rise in prices for equipment and machines, which is heated by the lack of semiconductor elements. The plant will weaken the dependence of European companies from imports from East Asia, where about 75 percent of global chip production facilities are concentrated.
The first chips for power tools will appear in July. Building capacity plant will be gradually, a member of the Board of the company Harald Crhereter June 7 at the opening ceremony of the factory.
On the construction of the factory, Bosch received about 140 million euros from the Ministry of Economy and Energy of Germany. According to the company’s forecasts, the demand for semiconductors in 2021 will grow by 11 percent. The new enterprise in Dresden will supply the whole world chips.
Problems with the supply of microcircuits were reflected in many industries due to the hyperscript on electronics in a pandemic. The consulting company Alixpartners on May 13 stated that the global shortage of semiconductor chips would reduce the release of cars in 2021 by 3.9 million, manufacturers’ losses are estimated at 110 billion dollars.