Bosch to Invest EUR 350M in Malaysia's Automotive Chip Factory

Bosch, a global technology and services provider, has officially opened one of Asia's most advanced semiconductor backend sites in Penang, Malaysia, for final testing of its automotive chips and sensors.

Bosch plans to invest around EUR 350 million ($384.35 million) in the site until the middle of 2030, according to a statement released on Tuesday.

With this announcement, the company continues to systematically strengthen its semiconductor business and manufacturing footprint in order to meet global chip demand.

“Semiconductors are key to the success of all Bosch’s business areas. The Penang backend site is a key component in our growth strategy in the mobility sector as we respond to the increased demand for semiconductors,” said Klaus Maeder, member of the Bosch mobility sector board responsible for operations.

"We chose Penang because of its strong semiconductor knowledge and skilled workforce." Another advantage is the proximity to business partners and customers, which will reduce delivery times and distances for the chips," he added.

According to the statement, semiconductor production is divided into two parts: front-end production and back-end production. The Penang facility is the first of its kind in Bosch's Southeast Asia region, with a land area of 100,000 square metres.

It will primarily concentrate on the latter, which is the final testing of chips manufactured at Bosch's Dresden fab.

The high-tech semiconductor backend site currently spans 18,000 square metres and includes clean rooms, office space, manufacturing and quality assurance laboratories.