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Market Cap £34.26bn
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Bosch to make silicon carbide chips in electric vehicle range-anxiety play

Mon 7th October, 2019 11:00am
DRESDEN, Germany, Oct 7 (Reuters) - German automotive
supplier Robert Bosch  ROBG.UL  is launching production of
silicon carbide automotive chips, in a move to address the range
anxiety that deters many drivers from switching to electric
    Silicon carbide is more conductive than more widely-used
silicon, making it possible for the chips that manage the motors
in battery-powered vehicles to have higher switching frequencies
and to throw off less heat.
    "Silicon carbide semiconductors bring more power to electric
vehicles. For motorists, this means a 6% increase in range,"
Bosch board member Harald Kroeger said on Monday.
    Bosch will make the silicon carbide chips at its existing
plant in Reutlingen, near its Stuttgart headquarters, executives
said at an event to update on progress in building a new, 1
billion euro ($1.1 billion), chip fabrication plant in Dresden.
    The Dresden 'fab', Bosch's largest single investment, will
use wafers with a diameter of 300 mm - making it possible to
cram more chips onto a single wafer than existing production
methods using diameters of 150-200 mm.
    The plant - part of the Silicon Saxony hub - is expected to
start working in the spring of 2020. Dresden is the capital of
the state of Saxony.
    Privately held Bosch, the leading automotive 'Tier 1'
supplier, is positioning itself as a supplier of the full range
of semiconductor products for the electric, connected and
self-driving cars of the future.
    The average car contains chips worth $370, according to
industry estimates, but that figure rises by $450 for
emission-free electric vehicles. Another $1,000 will be packed
into the future self-driving cars, making semiconductors a
growth opportunity in a car industry struggling with stagnant
    Bosch ranked as the sixth-largest supplier on the $38 
billion automotive semiconductor market last year with a share
of 5.4%, according to Strategy Analytics.
    The market leader was NXP  NXPI.O  on 12%, followed by
German competitor Infineon  IFXGn.DE  on 11.2%. Infineon already
runs a 300 mm fab in Dresden and is building a second
 in Villach, Austria.

 (Reporting by Douglas Busvine
Editing by Michelle Martin)
 ((; +49 69 7565 1271; Reuters Messaging:
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