According to reports, tier one auto industry supplier Bosch has announced a $1.1 billion facility that will produce semiconductors used in self-driving cars, smart homes, and smart city infrastructure. The new plant will be based in Dresden and is reported to be completed by 2019 and will start producing silicon commercially in 2021.
This move by the company to expand its chip manufacturing capacity by a huge scale is seen as an effort to consolidate its position as a key automotive supplier. In future semiconductors is seen to be the key ingredient in cars as they get more and more connected. Although Bosch is not new in this field of chipmaking as reports say it has been supplying chips for cars as well as smartphones for around 40 years but with giants like Intel, Qualcomm are trying to create a space for themselves in automotive sector this move is significant.
Of late, there has been a lot of activity in automotive semiconductor market with Intel acquiring Mobileye, Qualcomm taking over NXP and Samsung Electronics acquiring Harman. It was forecasted by Research and Markets that the global automotive semiconductor market is expected to reach an estimated $45.9 billion by 2022 and to grow at a CAGR of 6.4% from 2017 to 2022. With dwindling share in the smartphone market with the advent of cheap semiconductor manufacturers, the giants have shifted their focus towards automotive.