Stuttgart, Germany – They may be small components, but they have a big impact: semiconductors are the driving force behind the modern technological world. As an indispensable component of all electronic systems, they are already miniature heroes in cars, e-bikes, home appliances, and wearables. Now, rapid growth in new technology markets – particularly robotics and data centers for artificial intelligence (AI) – means demand for them is skyrocketing. According to a recent McKinsey study, meeting semiconductor demand for generative AI applications alone will require an additional annual volume of up to 3.6 million wafers by 2030. Meanwhile, analyses by Strategy& and the German Electro and Digital Industry Association (ZVEI) suggest that robotics and industrial automation will cause European demand for semiconductors to double by 2040.
Bosch wants to participate in this growth and plans to generate some 5 billion euros in semiconductor sales by 2030. To this end, the company will put its semiconductor business on a firmer footing as part of the reorganization of its corporate structure and the evolution of Bosch Mobility, which was announced at the end of October 2026. Effective January 1, 2028, Bosch will transfer its semiconductor operations to a new division called Semiconductors. The business will continue to be assigned to the Mobility business sector. Bosch’s semiconductor operations are currently part of its Mobility Electronics division.
“Semiconductors are the linchpin of our connected world and, at the same time, a key success factor for all of Bosch’s divisions,” says Markus Heyn, deputy chairman of the board of management of Robert Bosch GmbH and chairman of the Mobility business sector. The company aims to tap into additional sales and growth opportunities for its semiconductors not just in its existing automotive and consumer businesses – such as smartphones and wearables – but also in pioneering applications in robotics, where Bosch chips are already being successfully used. “Today, Bosch semiconductors already enable efficient control of humanoid robots. In the future, high-precision, innovative sensors will serve as the foundation for additional smart systems. Semiconductors are key to our technology that is ‘Invented for life,’ and they form the technological foundation for our customers’ innovations,” Heyn adds. Bosch is already a sought-after and attractive industrialization partner and component supplier for the global robotics industry, as well as one of the leading providers of sensor technology across the entire robotics spectrum – from robotic vacuum cleaners to humanoid robots. Moreover, the company will increasingly open up its manufacturing capacity to external partners in the future and will systematically expand its foundry business.
Bosch is continuously investing in its global semiconductor business
By restructuring its chip operations into the new Semiconductors division, Bosch is better aligning its organization and processes with the specific and highly dynamic customer and market requirements of the semiconductor industry. “By establishing our own unit, we’re opening a new chapter in our more than 60-year history in the semiconductor industry,” says Erik Rein, who is responsible for Bosch’s semiconductor business. “In the future, we’ll be able to better tailor our services to our customers’ needs – in the automotive sector, consumer electronics, and beyond. Our unique strengths in the semiconductor business are our market and technology leadership in MEMS sensors, as well as the way we’ve integrated semiconductors into our systems business. In particular, that includes silicon carbide chips and application-specific integrated circuits (ASICs),” Rein says. “We want to build on these strengths and leverage them in select new markets.”
With approximately 40 semiconductor sites worldwide dedicated to research, development, and manufacturing, Bosch has a global presence. In recent years, the company has invested approximately 3 billion euros in its wafer fabs in Dresden and Reutlingen. In Roseville, California, Bosch is spending about 2 billion U.S. dollars to equip its plant with facilities to manufacture specialized silicon carbide chips. To strengthen its global resilience, the company also plans to further expand its test center in Penang, Malaysia, by the middle of the next decade. What is more, Bosch holds a 10 percent stake in the European Semiconductor Manufacturing Company (ESMC) GmbH, a joint venture in Dresden.
Control units and power electronics for the in-house automotive business
To date, the semiconductor business has been part of Bosch’s Mobility Electronics division, as has Bosch’s in-house business with electronic control units and power electronics. With effect from January 2028, the Mobility Electronics division will encompass the business related to electronic control units for automotive applications.
