Bosch to set up dedicated semiconductor division in 2028, targeting €5 billion in chip sales by 2030

German engineering and auto supplier Bosch announced on November 3 that it will set up a dedicated Semiconductors division on January 1, 2028, targeting €5 billion (about $5.59 billion) in annual chip sales by 2030.

How the structure changes

The new division will remain within Bosch's Mobility business sector but operate separately from the existing Mobility Electronics division, which will concentrate on electronic control units and power electronics for vehicles. The Semiconductors division will take responsibility for the development, manufacturing and distribution of microchips and sensors. Bosch stressed that this is an internal divisional change, not a spin-off into an independently owned company.

Beyond the car

Bosch said the new division will pursue customers beyond its existing automotive and consumer businesses, in robotics, artificial intelligence infrastructure and industrial automation. The company relies on a network of around 40 semiconductor-related sites worldwide for research, development and manufacturing, including 300-millimetre wafer production in Dresden and 200-millimetre lines at Reutlingen and Roseville, and plans to further expand its test centre in Penang, Malaysia, by the middle of the 2030s. Bosch also holds a 10% stake in ESMC, a Dresden-based chipmaking joint venture.

Markus Heyn, chairman of the Bosch Mobility business sector, said semiconductors were central to the company's operations; Erik Rein, who heads Bosch's semiconductor business, pointed to MEMS sensor technology and integrating chips into complete system solutions as key strengths. The €5 billion figure is a corporate sales target, not confirmed orders or current revenue.

(Sources: Reuters, Nov 3, 2026, and Bosch's official press release. Photo: file image of Bosch's Dresden wafer fab.)