Bosch is to open a $1bn research and development centre in China to address the needs of electrification and automated transport.
The new facility will be located in the city of Suzhou in southern Jiangsu province in the east of the country and will allow Bosch to focus on developing, testing and manufacturing EV parts and self-driving tech for locally based automakers.
While Bosch currently operates a number of factories in the areas and employs over 10,000 people, this investment is, according to German media, its second biggest single investment ever, after the creation of a chip factory in Dresden.
The investment will be made over several years, with the first phase of the project due to be completed in 2024. The new facility will cover 3.2 million square feet, and it will be focused on silicon carbide power modules, integrated power brakes and advanced driving solutions.
“China is the world’s largest auto market, full of promise and vitality. As a multinational enterprise, we need to make full use of the country’s local R&D capability and production capacity,” said Bosch CEO Stefan Hartung. “Through continuous development in China, Bosch will further enhance its global competitiveness and lay a solid foundation for the way to the future of mobility.”
Yudong Chen, President of Bosch China, added, “By further expanding our presence in China, we will be able to better respond to the fast-changing and sophisticated local market demand. Bosch remains committed to its ‘local for local’ development strategy to deepen our roots in the local market and support China’s move towards future electrified and intelligent mobility.”
Bosch’s sales in China in 2021, the last year for which figures are currently available, were worth around $16.8 billion.