Robert Bosch wants to spend $3 billion to strengthen European chip supply
Germany's Robert Bosch is relying more on semiconductors and plans to spend 3 billion euros ($3 billion) to ease a global shortage of computer chips that has hampered car production.
The auto parts maker said that it would invest by 2026, part of efforts by the European Union and German governments to double Europe's share of global chip production to 20 percent by the end of the decade.
The U.S. government has also stepped up efforts to boost domestic production after pandemic-induced supply shortages raised the risk of over-reliance on Asian imports.
"We’re gearing up for continued growth in demand for semiconductors," Bosch CEO Stefan Hartung said in a statement.
This is the latest move by Bosch to expand chip production after investing 1 billion euros in a new fab in Dresden, Germany, last June. Bosch said the additional semiconductor supply will be used not only in cars and trucks, but also in a range of other applications, from home appliances to wearable technology.
