Bosch invests one billion US dollars in China
The Foundation Group Bosch will invest around 950 million euros over several years in a new center for research, development and production on Bosch-Invest in Suzhou location. The company announced this on Thursday.
After the chip factory in Dresden, this is the largest single investment in the company’s history. “This is an important step on the way to the mobility of the future in the world’s largest car market,” explained Bosch boss Stefan Hartung, who also has regional responsibility for China in the group management.
The current investment is also causing a stir because many voices in politics and business are currently calling for the country to become more independent of China because of the geopolitical risks and ongoing violations of human rights. Also Bosch’s vice boss Christian Fischer recently announced in an interview that Bosch would become more involved in Vietnam and India and would endeavor to avoid one-sided dependencies. Bosch has been represented in China for over 100 years and today generates around a fifth of the group’s sales of over 85 billion euros there.
Electric cars: Bosch already has four factories in China
10,000 people already work in four plants in Suzhou. They produce and develop components for electric mobility and automated driving as well as powertrains for Chinese car manufacturers. In the future, the focus will be on silicon carbide power modules, integrated braking systems and innovative technologies for automated driving.
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The silicon carbide power modules are particularly delicate. Bosch is the only automotive supplier that builds its own silicon carbide chips. They control the battery, consume less energy themselves, increase the range by around seven percent and enable electric cars to be charged more quickly.
Electronics from Bosch should make electric cars from China more powerful
With Bosch’s power electronics, the Chinese manufacturers of electric cars will become even more powerful and thus more dominant in their home market than they already are. Recently, German car manufacturers have lost significant market shares, especially with electric cars on the Chinese market.
The first part of the center should be ready by mid-2024. Suzhou is already one of the Swabians’ largest and most modern locations worldwide. In 2021, one of the four plants in Suzhou was recognized as a “beacon” for smart manufacturing by the World Economic Forum. Overall, Bosch has around 55,000 associates in China.
More: Interview: Bosch Vice Christian Fischer sees growth potential in India.
First publication: 01/12/2023, 10:56 p.m.
