Bosch opens $1.57 billion semiconductor production facility in Dresden, looks to ease automotive supply constraints

German tech giant Bosch has opened the doors to a new semiconductor manufacturing facility in Dresden, which it hopes will plug the significant hole currently plaguing automotive supply chains.

The site – which was estimated to cost the company in excess of €1 billion (AU$1.57 billion) to build – will reportedly begin producing much-needed chips for vehicles by early September this year. It is so far unclear how the product will be distributed, and if German manufacturers – including Volkswagen, BMW, and Mercedes-Benz – will be given priority in the queue.

“The new [factory] is the single largest investment in the company’s history. This cannot be stressed too much. Its size and additional production capacity alone are impressive. The very latest methods of data-driven continuous improvement in production make the Dresden plant a smart factory,” said German Chancellor Angela Merkel.