As the chip shortage crisis escalates, more organizations are looking to develop their own chips as a solution. From Apple to Alibaba to Oppo, these companies know that if they don’t start making their own chips, there may just end up facing huge losses in the future.

The automotive industry has already been hit by numerous delays due to the global crisis while manufacturing companies have also had to cut down on orders because they are unable to deliver products on time.

In the beginning, the shortage was partly due to stronger demand for more advanced chips from the consumer electronics and computer industry through Covid-19. For context, worldwide semiconductor sales declined between 2018 and 2019, but by 2020, sales grew 6.5%. The rapid growth continued into 2021, and according to trade organization the Semiconductor Industry Association, sales for May 2021 were 26% higher than the same time last year.

As such, Bosch plans to invest more than than 400 million euros in expanding its wafer fabs in Dresden and Reutlingen, Germany, and its semiconductor operations in Penang, Malaysia. The expenditures and chip testing operations are expected to begin next year.

According to Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH, “Demand for chips is continuing to grow at breakneck speed. In light of current developments, we are systematically expanding our semiconductor production so we can provide our customers with the best possible support.”

Malaysia to solve the chip shortage crisis?
Interestingly, Malaysia is currently one of the top ten countries in the semiconductor industry, accounting for about 7% of the global semiconductor trade and about 13% of the global capacity in terms of back-end assembly tests and packaging. However, the country has suffered a series of Covid-19 inducted factory shutdowns that have impacted the overall supply chain.

A Reuters report stated that some chip factories are operating at lower capacity due to risks of mass infections on factory floors that could lead to an entire plant shutdown. But things are slowly improving as the country is also bouncing back from the pandemic with high vaccination rates in the population and some economic sectors being allowed to operate at full capacity.

Taiwan is the biggest chip provider with more than 50% of the market share, followed by China, the United States, and then Malaysia, which is home to suppliers and factories serving chipmakers such as STMicroelectron and Infineon as well as carmakers including Toyota, Ford, and General Motors.


https://techwireasia.com/2021/11/bosch-expa...hortage-crisis/

This post has been edited by Raddus: Nov 3 2021, 04:45 PM

cheap bosch then?

Fuiyoo, Bosch is already one of the longest factories in Bayan Lepas. Many years back, they provided bicycles for people to get from one end to the other end. Not sure if they still have them.

Must be nice to have cheap slave labor.. until all profit get sucked away see they still want or not hahaha

cukurrrrr

It makes sense to increase investment in Msia as many MNCs r looking to restructure their operations in Asia to rely less on China n move many of its assets n operations to SEA.

Msia is one of the key destination. Cheap labour n conversant in many languages. Cheap doesnt mean bad. Say RM6k for an accountant is way cheaper than paying in Sing Dollar but acceptable to many Msians. Win win. But u all better pray we dont lose more advantages n selling points to attract foreign investments. Alr we're losing some, it has better stop ther

Bosch last time had a big recruitment drive good la they contribute to the economy i wonder hows the environment there though.

Syukur malaysia negare maju

Msia semicon engineer simple become sifu then move to SG for few years and retire. Typical end game if wanna survive.