Bosch will move its semiconductor business into a dedicated division from January 2028, as the German supplier looks to expand chip sales beyond the automotive industry.

The company is targeting annual semiconductor revenue of around €5bn by 2030, it announced today. The new unit, which will be called Semiconductors, will remain part of Bosch rather than becoming a separate company.

Its chip business currently sits within the Mobility Electronics division, which will continue to handle the production of electronic control units for vehicles.

The restructuring reflects Bosch’s ambition to find more customers for its chips outside the automotive sector.

Its target markets include robotics, factory automation and AI data centres, alongside consumer devices such as phones and wearables. Bosch says its components already play a role in controlling humanoid robots.

“With the founding of a dedicated unit, we are opening a new chapter in our more than 60-year semiconductor history,” said Erik Rein, who heads Bosch’s chip business.

Bosch has several established positions in specialised semiconductor markets. It is a leading supplier of MEMS sensors, the miniature motion and pressure sensors used in devices such as smartphones and robots.

The company also produces silicon carbide chips and custom circuits for power systems.

Its manufacturing footprint spans around 40 chip sites worldwide. Bosch has invested approximately €3bn in its wafer plants in Dresden and Reutlingen, and is spending around $2bn to convert its Roseville, California facility to silicon carbide production.

The company also plans to expand its test centre in Penang, Malaysia, through the mid-2030s. It holds a 10% stake in ESMC, the TSMC-led semiconductor joint venture building a factory in Dresden.

The move comes as Europe’s automotive industry continues to grapple with chip supply risks.

Carmakers spent part of the autumn managing shortages during the Nexperia dispute, which exposed the industry’s dependence on a limited number of suppliers.

By offering manufacturing capacity to outside customers, Bosch could help diversify Europe’s chip supply while seeking new markets for its own technology.

Bosch deputy chairman Markus Heyn said the company’s sensors are “the key” to its products and “the technological basis” for its customers’ innovations.