Bosch to Spin Out Semiconductor Division, Targets €5bn Sales by 2030

Bosch will establish a dedicated semiconductor division in January 2028 and target €5bn ($5.63bn) in semiconductor sales before 2030. The German technology company confirmed the plan as robotics and AI data centres accelerate global chip demand.

The move gives semiconductors a standalone structure inside Bosch. Today the business sits within the company's mobility electronics division. Bosch wants growth in its existing automotive and consumer businesses and in new robotics applications.

What is Bosch building on?

Erik Rein, Executive Vice-President and Board Member of Bosch Mobility Electronics, said the company aims to leverage its MEMS sensor technology, silicon carbide chips and application-specific integrated circuits in select new markets. Bosch currently operates around 40 semiconductor sites worldwide, covering research, development and manufacturing.

The company has already put capital behind the silicon carbide push in the United States. In July it secured up to $225m in CHIPS Act funding to support SiC production in Roseville, California. Bosch unveiled plans to acquire US chipmaker TSI Semiconductors in 2023 to expand SiC output at the same California site.

How large is the US investment wave?

Bosch is riding a broader cycle. Companies across the US semiconductor supply chain have announced a combined $820.8bn in private investment since 2020, according to the Semiconductor Industry Association. That figure spans more than 160 projects across 30 states.

The SIA tally covers the full supply chain, not just chipmakers, and reflects commitments announced rather than capital spent. Bosch's Roseville award forms part of the federal CHIPS programme driving that pipeline.

What does this mean for industrial gas suppliers?

Gas producers are capturing the same demand signal. Electronics now accounts for 42% of Air Liquide's €6.2bn ($6.9bn) investment backlog. The French group signed more electronics projects in the first nine months of 2026 than during the whole of the previous year.

Linde reported a 15% year-on-year increase in its electronics end market for the third quarter. The growth was organic and driven by Asia-Pacific and the US.

Bosch's €5bn target implies a step change for a business that has so far operated as a component of the mobility electronics arm. Rein said: the company aims to leverage its MEMS sensor technology, silicon carbide chips and application-specific integrated circuits in select new markets. That portfolio points Bosch at power electronics for vehicles, sensors for consumer devices and robotics, and custom ASICs for specialised systems.

Why January 2028 matters

The timing gives Bosch more than a year to restructure before the division formally launches. Demand drivers cited by the company — robotics and AI data centres — are the same forces lifting gas suppliers' electronics books, suggesting the supplier base expects the chip build-out to run for years rather than quarters.

The 2028 launch will test whether a car-parts giant can convert a sensor and SiC heritage into a top-tier standalone semiconductor franchise by the end of the decade.