Electronics giant Bosch outlined plans to spend €3 billion on chip production by 2026, which will include the construction of two development centres in Germany, contributing to the EU’s goal to compete with Asia and the US in the semiconductor industry.

Bosch stated would seek funding for the sum under the EU’s newly-launched Important Projects of Common European Interests (IPCEI) framework for microelectronics and communications technology, intended to promote research and innovation.

Of the €3 billion, Bosch will spend more than €170 million on the construction of two development centres, along with €250 million to expand a €1 billion chip factory in Dresden which opened in 2021.

Chair Stefan Hartung (pictured) said the company believed microelectronics was the future for all of Bosch businesses, touting advancements in mobility and the IoT.

Hartung further outlined how Bosch’s moves added fuel to the European Chips Act, a European Commission initiative which aims to double the bloc’s global semiconductor production by 10 per cent to 20 per cent by 2030.

“Europe can and must capitalise on its own strengths in the semiconductor industry,” Hartung said. “More than ever, the goal must be to produce chips for the specific needs of European industry.”

Bosch added it was also building a new test centre for semiconductors in Malaysia.

From 2023, it will be used to test finished semiconductors and sensors built in Germany.