Bosch Splits Out Semiconductor Division, Targets €5 Billion by 2030

Bosch will launch a dedicated semiconductor division on January 1, 2028, and targets approximately €5 billion in chip sales by 2030. The German technology group announced the restructuring to sharpen its focus on robotics, AI data centres, consumer electronics and industrial automation, markets it says demand faster reaction than its automotive-centred structure allows.

The decision moves Bosch beyond its traditional role as a maker of specialised chips for electric mobility. The new division will operate independently and work from Bosch's existing research, development and manufacturing sites worldwide. Management wants it to react faster to dynamic, high-growth technology markets rather than the longer automotive design cycle.

What does the new division sell?

The €5 billion revenue target rests on three established product families: microelectromechanical systems (MEMS) sensors, silicon carbide (SiC) power semiconductors and application-specific integrated circuits (ASICs).

The independent structure matters commercially. It allows Bosch to pitch high-precision sensors for industrial automation and humanoid robots directly to smart-system developers outside its traditional automotive customer base. The company cites these new customer segments, alongside AI data centres, as the demand drivers behind the 2030 sales goal.

How much has Bosch invested in fabs?

The restructuring follows a sustained capital commitment to wafer fabrication.

• Bosch has invested €3 billion in recent years in its Dresden and Reutlingen wafer fabs in Germany.
• It is investing around $2 billion to equip its Roseville, California facility for silicon carbide chip manufacturing.
• It plans phased investments and site development to extend its semiconductor testing centre in Penang, Malaysia.

That footprint gives the new division both European 300 mm capacity in Dresden and SiC output in the United States, a combination Bosch intends to leverage as it courts non-automotive customers.

Why restructure now?

Bosch frames the move as a response to the growing importance of semiconductors in emerging technologies. The company built its chip business around automotive demand, including specialised chips for electric mobility units. Robotics, AI infrastructure and industrial automation now grow faster and pull sensor and power content into new product categories, and Bosch's structure had tied chip sales largely to its car customers.

The dedicated division changes the commercial picture in two ways. First, it gives the semiconductor business its own operating identity, with sales pitched directly to system developers. Second, it commits Bosch to expanding manufacturing capability for these segments rather than treating chips as a component supply for its mobility units.

The January 1, 2028 start date leaves more than a year for transition planning across the German, US and Malaysian sites. If demand for humanoid robots, industrial sensors and AI data centre power silicon holds at current trajectories, Bosch will enter the next decade competing for non-automotive chip revenue against established sensor and power semiconductor suppliers, with €5 billion in 2030 sales as its stated benchmark.