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Bosch Opens German Chip Factory to Help Relieve Global Shortage

  • Output of auto chips has been pulled forward by three months
  • Europe plans to reduce dependence on Asian, U.S. supplies
300-millimeter silicon wafers at the new Robert Bosch GmbH semiconductor plant in Dresden, Germany.

300-millimeter silicon wafers at the new Robert Bosch GmbH semiconductor plant in Dresden, Germany.

Photographer: Krisztian Bocsi/Bloomberg

Robert Bosch GmbH opened a 1 billion-euro ($1.2 billion) factory that should gradually help alleviate supply constraints and herald broader efforts to make Europe less dependent on imports from Asia or the U.S.

The first chips manufactured at the plant near the Germany city of Dresden will be used in electric tools next month, and output for auto parts has been accelerated by three months to September, Bosch said Monday ahead of the site’s opening ceremony. Chancellor Angela Merkel will attend remotely.