Bosch to Launch Semiconductors Division in 2028
Bosch will separate its semiconductor business from Mobility Electronics into a dedicated division starting January 2028, as demand grows from robotics and AI data centres.
Updated on Nov. 3, 2026 in Semiconductors
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Bosch plans to move its semiconductor business out of the Mobility Electronics division and into a new Semiconductors division beginning January 2028. The reorganisation was announced at the end of October and is part of a broader restructuring of Bosch's corporate structure and Mobility business sector.
Why it matters
The separation reflects fast-growing demand for chips, particularly from robotics and AI data centres, and Bosch plans to open more of its semiconductor manufacturing capacity to external customers. Mobility Electronics will then focus on electronic control units for automotive applications.
Bosch holds a 10% stake in the ESMC joint venture in Dresden and is spending about USD 2 billion to equip its Roseville, California plant for silicon carbide chip production. The company has not disclosed current semiconductor revenue to benchmark its 2030 target against.
The players
Bosch
Robert Bosch GmbH is a German multinational engineering and technology company known for automotive components, industrial technology and consumer goods.
The details
The semiconductor business currently sits within Mobility Electronics and will be separated into its own division as part of a reorganisation of Bosch's corporate structure. Bosch also plans to expand its Penang, Malaysia test centre further by the middle of the next decade.
Timeline
End of October 2026: Bosch announces the reorganisation of its corporate structure and Mobility business sector.
January 2028: The Semiconductors division begins operating as a dedicated division.
2030: Bosch targets around EUR 5 billion in semiconductor sales.
Middle of the next decade: Expansion of the Penang test centre is expected to be complete.
Industry Position
Analyses by Strategy& and ZVEI estimate that robotics and industrial automation could double European semiconductor demand by 2040. Bosch's separation of its chip business positions it to serve that demand rather than keep chips subordinate to automotive electronics.
The reorganisation mainly affects suppliers, customers and investors in the chip and automotive electronics supply chain rather than end users directly. Bosch's plan to open more of its semiconductor manufacturing to external customers could widen the pool of companies able to source chips from it.
The takeaway
Bosch's split of its chip business signals that robotics and AI demand is now large enough to justify standalone semiconductor operations within traditional industrial groups. Companies tracking the chip supply chain should watch whether Bosch's external capacity offers meet that demand.
What happens next
Bosch's Semiconductors division begins operating as a dedicated division in January 2028, and the company's EUR 5 billion sales target is set for 2030.
Further reading
Explore more semiconductor news to follow how chipmakers are responding to demand from robotics and AI.
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