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IFX - Infineon Technologies AG News Story

€31.62 1.0  3.3%

Last Trade - 14/05/21

Sector
Technology
Size
Large Cap
Market Cap £35.44bn
Enterprise Value £38.65bn
Revenue £8.61bn
Position in Universe 37th / 1053

UPDATE 1-Bosch to make silicon carbide chips in electric vehicle range-anxiety play

Mon 7th October, 2019 1:12pm
* Existing plant in Reutlingen to adopt new semiconductor
    * Dresden 'fab' advances, production seen in 2021
    * Automotive supplier sees chip content in cars growing

 (Adds details)
    By Douglas Busvine
    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
vehicles.
    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, seeks
to build on its leadership in sensor chips used to ensure that
smartphone screens show images the right way up, and to activate
airbag- or automated braking systems in cars.
    Bosch also wants to strengthen its position in so-called
Application-Specific Integrated Circuits (ASICs) that decide how
to act on sensor inputs; and in power electronics that manage
everything from a car's electric windows to its drivetrain.
    
    TWO-YEAR PLAN
    The first production run at the facility in the centre of
Germany's high-tech hub known as 'Silicon Saxony' is planned for
late 2021. The 'fab' will employ 700 staff.
    It will use silicon wafers with a diameter of 300 mm that
make it possible to cram more chips onto a single wafer than
existing production methods using diameters of 150-200 mm.
    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
sales.
    Throw in $100 for infotainment features, and the typical car
will pack more than $1,900 in semiconductors as technology
advances and as features now seen only in luxury vehicles spread
to mass-market models, Bosch reckons.
    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 https://www.reuters.com/article/us-infineon-austria/staying-close-to-home-infineon-to-build-new-chip-plant-in-austria-idUSKCN1IJ18G
 in Villach, Austria.

 (Reporting by Douglas Busvine
Editing by Michelle Martin)
 ((douglas.busvine@tr.com; +49 69 7565 1271; Reuters Messaging:
douglas.busvine.thomsonreuters.com@reuters.net))
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