Bosch carves out a chip division, eyes €5B in semiconductor sales by 2030

Bosch isn't staying in its lane. The German giant, the world's biggest automotive supplier, will carve out a standalone semiconductor division starting January 2028, the company said Tuesday. The chip business currently sits inside its Mobility Electronics arm.

The goal is serious: Bosch wants semiconductor sales to hit 5 billion euros by 2030, up from where the business sits today. That's roughly $5.59 billion at current rates. In short, the supplier best known for parts under the hood is betting big on the tiny silicon that makes them think.

The new unit won't just serve Bosch's own garages. The company says it will increasingly open its manufacturing capacity to outside partners and deliberately grow its foundry business — a notable shift for a firm that has traditionally kept chip production close to the chest.

Bosch already leans on a network of about 40 semiconductor sites worldwide for research, development and manufacturing. Come the mid-2030s, it plans to expand its test centre in Penang, Malaysia, deepening its footprint in Southeast Asia's chip corridor.

Detroit and Wolfsburg have felt the sting of chip shortages in recent years, with production lines stalling when supply dried up. By building a dedicated division and selling capacity to others, Bosch is positioning itself as both customer and supplier in a market where automakers are increasingly designing their own silicon.

No word yet on how the division will be structured, or whether chipmaking will get its own budget line. But the timeline is set, and Bosch is already counting the euros. The company also issued a correction Tuesday, dropping the phrase 'spin off' from its original headline and first paragraph.