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Bosch to spin off semiconductor division in January 2028

By · Published by Everything Blog

In short

The planned corporate separation aims to capitalize on surging demand for microchips used in vehicles and electric bicycles. Bosch intends to use its newly independent structure to broaden its foundry operations and take on more external manufacturing contracts. The company currently manages around 40 specialized semiconductor facilities worldwide focused on development, production, and research. Longer-term expansion initiatives also include upgrading a key test center located in Penang, Malaysia, toward the middle of the next decade.

Key points

  • The planned separation will officially detach the chip business from the company's broade…: The planned separation will officially detach the chip business from the company's broader Mobility Electronics division.
  • Expanding the foundry business to external manufacturing partners will serve as a core st…: Expanding the foundry business to external manufacturing partners will serve as a core strategic objective moving forward.
  • Growth targets depend heavily on ramping up components engineered specifically for the au…: Growth targets depend heavily on ramping up components engineered specifically for the automotive and e-bike markets worldwide.

Sources checked by our analysis pipeline: 1

Nov 3 : Bosch, the world's top automotive supplier, will spin off its semiconductor division in January 2028, it said on Tuesday.

• The German firm said it aims to increase sales of the small components used in cars and e-bikes to 5 billion euros ($5.59 billion) by 2030

• Currently, the semiconductor activities are part of the Mobility Electronics division

• The firm will increasingly open its manufacturing capacities to external partners and strategically expand its foundry business, it added

• Bosch, which relies on a network of around 40 semiconductor sites worldwide for research, development, and manufacturing, plans to further expand its test centre in Penang, Malaysia, by the middle of the 2030s

($1 = 0.8937 euros)

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